Why international investors are still buying UK property
By Molo
In an increasingly volatile global economic environment, UK property continues to stand out as a stable and attractive investment option. International investors value the UK for its consistent property values and long-term growth potential, all factors that can help safeguard investments against global market turbulence.
Who’s investing in UK property?
Research reveals that Hong Kong nationals remain highly active and own nearly 26,000 properties in London alone, an 5.7% annual increase. Similarly, interest from US buyers has significantly grown, driven partly by political events at home and advantageous currency conditions. Chinese investors recorded the strongest annual growth at nearly 13%, reflecting ongoing demand from Asia.
Market challenges and realities
The UK market isn’t without hurdles. Recent tax increases, like the 2% surcharge for overseas buyers and elevated stamp duties on second homes, have slightly cooled enthusiasm. Prime Central London, in particular, has seen reduced speculative investment, as buyers grapple with higher upfront costs. Yet these changes haven’t deterred serious long-term investors. More international buyers are now looking beyond London, attracted by better affordability and stronger growth potential. This is especially true in the North of England. Northern properties now sell almost three times faster than those in London, averaging just 32 days on the market compared to 61 days in Westminster and 58 days in Kensington and Chelsea. Additionally, affordability differences are stark, with only 9% of properties in London remaining stamp duty-free for first-time buyers, compared with 74% in the North East.
Support for international buyers
Molo continues to support international buyers with loan-to-values up to 85%. We accommodate a wide range of nationalities and eliminate the need for a UK bank account. With flexible affordability assessments and unique buy-down switch product - allowing borrowers to initially fix rates and switch to trackers later – Molo makes UK property investment simpler and more accessible.
A resilient investment opportunity
UK property remains a resilient and attractive investment, particularly for investors looking beyond short-term market fluctuations. With strong fundamentals, continued international interest and specialist lending support, overseas investors can find opportunities in the UK's diverse housing market
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