There has been an increasing number of UK buy-to-let enquiries from British expats, according to new research from Liquid Expat Mortgages. These findings reflect the growing demand we’ve been seeing for buy-to-let (BTL) mortgages from overseas investors; due partly to the increasing strength of foreign currency against the pound.
The British property market has long been attractive for foreign investors who are drawn to the UK by a robust legal framework and rising house prices. The UK property market is a benefactor of controlled planning and strict regulations that ensure a degree of legitimacy and stability that cannot be found across many overseas economies.
Outlined in our earlier article this year, as a country with; small landmass, an ever-increasing population, coupled with a housing shortage and an increase in single person households, it is clear that the price of homes will continue to increase in the same vein and provide a return on investment for both foreign and domestic investors.
Liquid Expat Mortgages figures show that enquiries for UK buy-to-let mortgages from overseas investors has increased by 90% from the previous year (2016), despite stricter stress-testing regulations brought in by the Prudential Regulation Authority (PRA) in January. Thanks to a weaker pound, the post Brexit UK property market is becoming an increasingly attractive investment opportunity for overseas buyers.
Stuart Marshall, Managing Director of Liquid Expat Mortgages commented: “Over the last decade, very few lenders provided mortgages to expats, but that has changed more recently thanks to the increasing demand from expats looking to invest in UK buy-to-let property.
“Many expats are keen to keep a foothold in the UK and the yields on BTL properties in the UK are far ahead of those offered by other countries. This increased interest in UK BTL mortgages is in spite of increasing initiatives by the UK government to dampen BTL purchases, such as the second home stamp duty and increasing stress testing for buy-to-let mortgages.”