07 Jun 06.06.2019 UK property inquiries increase because of Brexit
06.06.2019 UK property inquiries increase because of Brexit
Online searches for UK real estate from potential international buyers and investors increased by 72%, as many see the rare opportunity to purchase into the market at favourable prices, with a long-term view.
According to property portal Placebuzz there has been a significant increase in the number of inquiries from foreign overseas purchasers since the UK decided to leave the EU as a result of the Referendum on 23 June 2016.
New figures indicate that many foreign investors are taking advantage of the opportunity created by Brexit.
In the first three months of 2019 alone, foreign investors accounted for 6.2% of all activity on the Placebuzz portal. This is a 72% increase on the 3.6% of total activity from the investors based overseas during January to March 2016.
Birmingham, Glasgow, London and Manchester are the most popular cities for international buyers looking for a “rare opportunity to buy into the market” with promising exchange rates. The biggest amount of searches on Placebuzz portal was made in Glasgow, Birmingham, Manchester and London.
International buyers looking to take advantage of the weakened pound following the vote for Brexit are accounting for a significant amount of this activity.
Placebuzz’s forecast is that, if sterling was to lose further value against the dollar due to the prolonged Brexit process, then this could further increase the demand from overseas investors.
“With sterling currently worth around 12% less against the dollar than pre-referendum, buying UK property is a very shrewd move for foreign investors looking to secure a bargain,” explained Neil Tillott, Business Director at Placebuzz.
“Owning property in the UK is a goal of many overseas property investors and we’ve seen a clear rise in the proportion of searches for UK property which are taking place overseas since June 2016.”
He added: “Foreign buyers view the impact of Brexit on the value of sterling as a rare opportunity to buy into the market at favourable prices, with a long-term view.”