Spike in American investors' UK property enquiries
Estate agents are reporting a rise in enquiries from US investors keen to enter the UK housing market, as they take advantage of a favourable exchange rate.
Richard Davies, managing director of the London-based estate agent Chestertons, said: “With the dollar’s beneficial exchange rate against the pound, our branches registered a particular spike in buyer enquiries from US citizens or residents of countries where the dollar is a primary currency.”
He added: “To maximise the saving that can be had due to the exchange rate, buyers have been drawn to some of London’s most prestigious neighbourhoods such as Knightsbridge, Mayfair and South Kensington.”
Six months ago, a property selling for £4 million would have cost US investors around $5.19m, which amounts to around $4.44m at the current exchange rate and saves buyers more than $750,000.
The UK housing market has remained resilient despite recent economic troubles and the increased interest from foreign investors will “add to the appeal” of the market, reported property investment company BuyAssociation.
The Halifax house price index for September showed a slight slowdown in housing prices compared to August’s figures, but Halifax Mortgages director Kim Kinnaird explained that the inflation seen by the market in recent years had been “significantly above the historic average.”
Tom Brown, managing director of Ingenious Real Estate, cautioned: “The picture is not uniform across the country and all price points,“ adding, “It can be quite misleading to look at the market too broadly.”
Any weakness in demand from owner-occupiers in the UK will also be balanced by greater demand from renters, which is something that both local and US investors could explore, Brown suggested.
