As instructions increase, the summer of sales means UK expat investors are benefiting massively from increased choice in the market.
MANCHESTER, GREATER MANCHESTER, UK, 26 July 2022 /EINPresswire.com/ — The housing market is changing once again. As the instructions grow, it looks like 2022 will be ‘the summer of sales’, a change that can only benefit UK expats and foreign nationals looking to invest in UK property.
‘Summer of Sales’ is starting to bite.
Much of the talk in the sales market lately has focused on the mismatch between supply and demand for homes. In short, there has been far more demand for housing than the number of available housing. This has contributed to the conditions we have been talking about for some time: namely, there are more people in the rental market who cannot afford to buy, and the price of property has become massively inflated. However, there are signs that the number of sales is increasing and the mismatch between supply and demand is starting to realign.
According to Rightmove, within two weeks approaching July 6, there was a 14% increase in the number of properties for sale compared to the same period in 2021. In June, Rightmove also reported its busiest day for property valuations since May 2021, which was also the fourth busiest day on record.
What does this mean for UK expats and foreign national investors?
“Increasing listings and growing valuations indicate that the sales market is changing again, and UK expats and overseas domestic investors will have more choice when choosing an investment property. . Additionally, demand has also fallen slightly from the highs we were seeing in 2021. This means there is increased choice and a slower market. This is good news for UK expats and foreign national investors as both of these factors will help bring prices down and the reduced pressure also means that UK expats and foreign national investors can better tailor their property choice to their business goals. precise investment.
“This change in the market comes at a good time for UK expats and foreign nationals, who are already benefiting from it due to reduced competition from domestic buyers and investors. Increases in the Bank of England’s base rate are reducing the purchasing power of Britons as high street lenders raise their interest rates and affordability rules become stricter. In contrast, UK expats and foreign national lenders do not raise interest rates in the same way for their clients. This is to stimulate business in this highly competitive and lucrative sector of the market. Additionally, many UK expats and overseas mortgage users are paid in currencies other than sterling, which means they also benefit from a more competitive exchange rate compared to domestic buyers.
What should UK expats and overseas national buyers consider with the increased choice?
Due to the increased choice, UK expats and overseas domestic investors are now better able to tailor their investment properties to their specific needs. “There are so many things to consider,” says Stuart Marshall. “And of course speaking to an expert UK expat or overseas mortgage broker will be the quickest way to improve investment quality and access a wealth of offers from specialist lenders. But, in general, the most important considerations will be the square footage of the property, the type of property and the type of investment. Although investors have had to compromise slightly on one or more of these attributes due to the busy market, it should be easier to satisfy all three to some extent with reduced demand, reduced buyer power and supply. increased number of properties available.
Choosing a location for an investment property is one of the toughest decisions for UK expats and foreign national investors. It will largely be dictated by the target market for the investment, which will massively reduce the search parameters of the investment property. “Unless you have a specific goal in mind, Attracting the youth market is essential at the minute’ says Stuart Marshall. “They are the ones putting the most money into the rental business at the moment, so if UK expats and overseas investors are looking to quickly start seeing a return on their investment, a property that appeals to a younger market will be the key,” adds Stuart Marshall. “With that in mind, the major downtown hubs will be a great starting point when it comes to location. Of course, an expert broker can help you choose a location. There are also many excellent guides for choosing a location in our news section.’
The type of ownership is also important. However, at the moment, certain types of properties appear more frequently in our discussions than others. These are apartments in the city center and new buildings. Currently, the cost of living crisis is causing many tenants to prefer new construction, as these properties are generally more energy efficient. In fact, according to Zoopla, 80% of new build properties have an EPC rating of A or B. This compares to only 3% of older properties. This translates to up to 52% – or £629 – lower running costs per year, which is important for cash-strapped tenants looking to move. Buying new build will also save UK expats and overseas domestic investors the long and often costly process of carrying out energy efficient renovations to bring the rental property into line with the new EPC rules. Additionally, these properties are highly mortgageable, meaning they are a very attractive choice to use in conjunction with one of the excellent mortgage products for UK expats or foreign nationals available today.
“Downtown properties are also attractive at the moment, in large part because the rental sector is being driven by the market of young people who, on the whole, are returning to cities to be close to their place of work or of social centers. Downtown properties also generally tick a lot of the boxes that new builds tick, as they generally have lower running costs due to their smaller footprint, as well as lower EPC ratings as they are often larger developments. recent.
Due to their current popularity, new build and city center apartments are a great starting point for UK expat and foreign national buyers looking to invest using a UK expat or foreign national mortgage .
Finally, the type of investment will also be important. In general, the most popular choice will be a long-term buy-to-let. This is an excellent choice and very typical of the UK expatriate and overseas mortgage market. However, for more experienced investors or those looking to diversify their property portfolio, vacation rentals and student residences are also great options. “We always recommend buy-to-let as we often find it to be the easiest and most rewarding type of investment for UK expats and overseas mortgage users. Specific investments require different strategies, and some UK expat and overseas investors might find that another type of UK property investment might be better suited to them for their specific goals, which is why it’s always best to speak to an expert UK expat and an overseas mortgage broker who can help determine the best route for any UK expat or overseas investor.
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