With the UK property market slowing due to rising interest rates and inflation, foreign buyers are taking advantage of the opportunity to secure properties at lower prices. With the weakening British Pound compared to some currencies, foreign buyers can make significant savings on UK property purchases.
Since February 2022, the average UK sold price has increased by 7.8 per cent to £294,329, according to research by lettings and estate agent, Benham and Reeves. However, foreign buyers are finding that the weakening British Pound is allowing them to secure properties at a lower price than they would have been able to a year ago.
Buyers from countries such as the US, Canada, Middle East, and Australia are finding that they are able to make significant savings on UK property purchases due to the strength of their currencies compared to the British Pound. Spending the average £273,066 on a British home would have cost $369,459 a year ago. Now, a more expensive average of £294,329 equates to just $355,079, 3.9 per cent less equivalent to a saving of $14,381 (£12,161).
In London, the savings difference is $45,799 or £38,730 from a dollar perspective. Meanwhile for the UAE savings of between 3.9 per cent for the average home, £12,142 (AED 52,717), to 6.5 per cent, £38,690 (AED 167,986), for the average London home are feasible. For Hong Kong buyers the saving sits at 3.3 per cent for the average UK home, £10,254 (HK$95,145), and 6 per cent, £35,111 (HK$325,801) for the mean home in London.
Foreign buyers are finding that the UK property market offers a safe haven for their investments, particularly in light of the ongoing uncertainty surrounding the global economy. Despite the current slowdown in the UK property market, experts believe that the market is still a solid investment opportunity for foreign buyers looking to make a long-term investment in the country.
As the UK property market continues to slow down, foreign buyers are making the most of the opportunity to secure properties at lower prices and take advantage of the favorable exchange rates. With the strength of their currencies compared to the British Pound, foreign buyers are finding that they can make significant savings on UK property purchases and secure a solid long-term investment in the country.
“Knight Frank’s latest Wealth Report Attitudes Survey, which represents ultra-high net worth individuals and advisors with $2.5 trillion of private capital, found that real estate was the top cited opportunity among 46 per cent of our survey respondents, whether for its attributes as an inflation hedge or due to the benefits of diversification.”