Why Overseas Investors Are Turning to UK Property?

A recent study by Benham and Reeves highlights the continued dominance of Hong Kong nationals in England and Wales’ property market. The findings, derived from a Freedom of Information request to the Land Registry, reveal an increasing appetite for UK real estate among international buyers, with foreign-owned properties climbing by 2.6% in 2024 compared to the previous year.

Key Findings from the Research

• Overall Foreign Ownership: A total of 189,793 properties in England and Wales are owned by foreign buyers, reflecting sustained growth in international interest.
• Hong Kong’s Prominence: Hong Kong nationals lead the charge, owning 25,972 properties, a 5.7% year-on-year increase. They account for 13.7% of all foreign-owned properties, cementing their place as the largest group of overseas investors.
• Top Nationalities Investing:
  • Singapore ranks second with 15,635 properties, representing 8.2% of foreign ownership.
  • The United States comes third with 12,405 properties, a 5.5% year-on-year increase.
  • The UAE (5.8%) and China (5.2%) complete the top five, with China seeing a 12.9% jump, the largest among the top 20 nations.

Emerging Trends

• Growth Among Chinese Investors: China’s rise to the fifth spot, overtaking Malaysia, highlights growing confidence in the UK property market.
• Israel Enters the Top 20: Israel replaces New Zealand, with a 6.6% increase in property holdings in 2024, making it one of the fastest-growing investor groups.
• Diverse Global Interest: Ireland, Australia, Kuwait, and France round out the top 10, showcasing the global appeal of UK real estate.

Why London and the UK Continue to Attract Overseas Investors

The ongoing demand from Hong Kong buyers is closely tied to the British Nationals Overseas (BNO) Visa, launched in 2021, which has facilitated migration and investment. Similarly, geopolitical factors and economic stability have drawn investors from regions like the United States and Israel, further broadening the UK’s international investment base.

Marc von Grundherr, Director at Benham and Reeves, notes:
“Hong Kongers remain by far the most dominant nation, with their share of the market increasing year on year. Other factors, such as geopolitical tensions and shifting economic conditions, have also driven demand from new entrants like Israel and increased activity from established markets like the United States.”

Magnate Assets’ Perspective

Keith Egan, Managing Director of Magnate Assets, comments:
“This data reinforces the UK’s enduring appeal as a secure and profitable property investment destination. The diversity of international investors demonstrates the resilience of the market, even amidst global uncertainty. For overseas buyers, the UK offers not just strong returns but also a robust legal framework and unmatched transparency.”

The steady growth in foreign ownership, coupled with attractive rental yields and long-term capital appreciation, makes UK property a compelling choice for international investors. With cities beyond London offering competitive entry points and promising returns, the opportunities are ripe for exploration.

Whether you're a seasoned investor or exploring your first UK property venture, Magnate Assets is here to guide you every step of the way.