By David Fuller
Overseas investors from outside the EU are being increasingly drawn towards UK property due to the low prices caused by a falling Pound.
New research from investment platform Homegrown reveals that buyers from Russia and South Africa are essentially able to enjoy discounts of 21 per cent on pre-referendum property prices, while Brazilian investors have seen reductions of 17 per cent. Even EU buyers can make the most of 16 per cent discounts.
Buyers from India and China are also reaping significant benefits despite house price growth of more than 6 per cent since last year’s Brexit referendum.
The survey shows that fluctuations in global currency markets mean that buyers from Russia and South Africa can purchase a property worth £1 million in the UK for the equivalent of around £841,000. A property worth the same amount would cost a purchaser from Brazil around £878,000, one from Australia around £890,908 and one from an EU country approximately £894,000.
“This just goes to show the incredible value that the UK property market still represents to armies of investors around the globe,” said Anthony Rushworth, founder of Homegrown. “Growth in the housing market has slowed over the last year but it’s still growing on an annual basis and foreign demand is bound to be playing its part.”
The report shows that Turkey, due to political unrest, and Argentina, which only exited recession in late 2016, are in the unique position among the G20 states of having to pay out more since the vote.
Research for London Mayor Sadiq Khan earlier this year revealed that roughly 3,600 of the 28,000 new homes built in the capital between 2014 and 2016 were purchased by international buyers.