Britain’s departure from the European Union represents an interesting value proposition for far eastern property buyers looking to enter the prime London market
In November, the Bank of England published a report predicting that Brexit could “lead to house prices falling by close to 30%”. Combined with a weakened sterling, this creates an ideal climate for value-conscious international buyers looking to invest in British property, particularly within the market’s luxury segment.
For no demographic is this truer than Far Eastern buyers, as fraying political relations with President Trump have made more and more overseas investors look to London in favour of state-side investment opportunities. And for those with a preference towards bricks and mortar, there is no time like to present to stake a claim on a piece of London’s property market.
GBP to USD Dollar Exchange Rate
This May saw the British Sterling remain at a four-month low against the Dollar and a three-month low against the Euro. A fall that significantly lowers the bar for entry into the UK market, particularly for those in the Far East, allowing them ample opportunity to access a once walled off investment opportunity.
The real-world impact of recent developments is plain to see, as interest from prospective buyers in the £10 million and above bracket was 7% higher in Q3 of 2018 compared to the same period in 2017.
Prime Property & Higher Education
Among this newfound group of Far Eastern investors are a number of parents eager to enlist their children in the UK’s outstanding higher education program. This comes as little surprise. Historically, education is of great importance in China, hence families will often spare no expense when it comes to ensuring that their children attend only the finest universities. Naturally, with the demand for world-class education comes a growing demand for new residences within easy reach of a student’s institution of choice. According to the Mayor of London, Boris Johnson, the capital could potentially have a denser population of Chinese students than any other foreign city.
Moving forward, this trend is unlikely to change. Chinese students not only have an impressive track record when it comes to academic performance but contribute around £2 billion to the British economy, meaning British institutions will continue to welcome these new entrants, even investing in graduation ceremonies held in Beijing and Shanghai for their convenience.
President Trump’s Trade War
This trend has seen increasing prominence in the wake of ongoing trade tensions with the US, amid concerns that Chinese students no longer feel as welcome in American institutions like Harvard and Princeton. Commentators predict that UK universities while likely be receiving record-breaking numbers of students from China.
London is exceptionally well prepared for these new enrolments. Prospective students have a wealth of housing choices, ranging from purpose-built student accommodation to private apartments like Pinks Mews, which are within walking distance of leading universities.