Overseas buyers invest in UK
Wealthy foreign individuals are boosting the UK property market through their investments.


Although UK investment in property abroad rose by 229% from 1994 to 2004, overseas investors are equally vociferous when it comes to buying property in Britain, says a new study, The International Demand for UK Residential Property 2008, from top-end agent Knight Frank (www.knightfrank.com). Last year in London and the south east of England, 37% of property in the £1 to £2 million range was bought by overseas investors. The majority of these purchasers came from Europe (11%), followed by Russia (5%) and the Middle East (4%). There is an appetite for overseas investors to buy property abroad, says Liam Bailey, Knight Frank s head of residential research. The question is how easy is it for them to get capital out of the country and place it elsewhere? The price band for investors has widened encompassing property priced between £175,000 and £5 million, with purchasers from emerging nations like Kazakhstan, India and South Korea. A lot of high-end foreign buyers come from Asia and the Middle East due to the success of commodities like oil and manufacturing in their countries, Mr Bailey explains. Once these high net worth individuals make money, they create a global portfolio and a lot of investment comes down to what they know and the city of London is the place that springs to mind when foreign investors think of Europe. Investing in rural property tends to be for foreign buyers own use, compared to buying in the English capital, where foreign investors purchase a mixture of high value homes where they live alongside lower end property for investment. Increasingly, intermediaries are carrying out research for these wealthy individuals and I hope the work is done properly adds Mr Bailey, who is not convinced advice handed out to foreign buyers is always of the highest quality.
Sign up for the Country Life Newsletter
Exquisite houses, the beauty of Nature, and how to get the most from your life, straight to your inbox.
Country Life is unlike any other magazine: the only glossy weekly on the newsstand and the only magazine that has been guest-edited by HRH The King not once, but twice. It is a celebration of modern rural life and all its diverse joys and pleasures — that was first published in Queen Victoria's Diamond Jubilee year. Our eclectic mixture of witty and informative content — from the most up-to-date property news and commentary and a coveted glimpse inside some of the UK's best houses and gardens, to gardening, the arts and interior design, written by experts in their field — still cannot be found in print or online, anywhere else.
-
A well-connected rural playground with 23 acres on the edge of the South Downs National Park
Old House Farm is an impressive family home with a wealth of amenities that would inspire any rural passion.
By Arabella Youens Published
-
The UK gets its first ‘European stork village’ — and it's in West Sussex
Although the mortality rate among white storks can be up to 90%, the future looks rosy for breeding pairs in southern England.
By Rosie Paterson Published