Investors fear the impact of Brexit on international buyers

Written on 14 October 2019 by Giles Cook in Property News


More than half of UK investors believe Brexit could threaten overseas investment in property, weakening the housing market, according to a new study.

Research from Butterfield Mortgages Limited has found that 82% of investors think that overseas buyers are vital to a competitive housing market, with 57% believing they are crucial to the UK economy as a whole.

But 55% of respondents fear that Brexit will put overseas buyers off investing creating ripples throughout the market.

Alpa Bhakta, chief executive of Butterfield Mortgages said: “As the UK heads towards the Brexit deadline, the country’s ability to attract international investment is going to be hugely important. This new research highlights how many property investors are concerned that we may, in fact, be pushing away overseas buyers and in turn damaging our own real estate market.”

Two thirds of those surveyed did, however, want to see limitations on foreign investment through an increase in stamp duty. A cap on the number of properties, which could be purchased by a non-resident was also favoured by 58%.

More than half of the investors (55%) believed that overseas buyers should be prevented from purchasing property at the cheaper end of the market in order to maintain the supply of affordable housing.

According to Mr Bhakta: “It is clear that controls must be put in place to protect the interests of domestic buyers, whether that is a stamp duty surcharge or property cap for overseas buyers.

“Ultimately, a fine balance must be found, as overseas buyers make a significant contribution to the UK economy through the purchase of prime properties, simultaneously ensuring the top end of the market remains competitive. They should not be pushed away too eagerly, nor made scapegoats as the UK struggles to address the bigger issue of a lack of affordable housing.”

Read more about this story on the Property Wire website.

Giles Cook

Giles recently joined Best Gapp in 2017 as Partner Designate and Head of Residential Agency, bringing over 20 years’ experience to the firm. Following a three-year stint as an Area Director for Foxtons, he went on to head up Chestertons’ sales and lettings operations in central London, before becoming a Partner at top Knightsbridge boutique WA Ellis.

All articles by Giles Cook

RELATED ARTICLES


Housing market to remain open in second lockdown
9 November 2020

The housing market will remain open during the second national lockdown with people still being able to conduct viewings and move house.

Read more
New offices, homes and public space proposed for historic area of Mayfair
10 August 2020

Plans have been submitted to Westminster Council for a mixed development, bringing housing, shops, restaurants and a 31-bedroom hotel to Mayfair. Hopkins Architects, backed by the Duke of Westminster’s property company, Grosvenor, are behind the plans, which would create 14,000m² of office space and 5,000m² of shops and restaurants. The development is proposed for the […]

Read more

Contact Us

+44 (0)20 7730 9253
81 Elizabeth Street, London SW1W 9PG

Get in Touch