The UK property market is set to undergo a major boost from Hong Kong buyers looking for owner-occupiers and an investment opportunity in property in the country. Following the announcement of the new path to UK citizenship for Hong Kong nationals, the UK property market saw a surge in interest from Hong Kong buyers. It is looking likely that this will increase even more.
January visa floodgate
Although interest levels fell during the autumn’s covid19 resurgence and second national lockdown, demand will likely pick back up. A recent article by the South China Morning Post predicts a “January visa floodgate” of thousands of applications for British citizenship.
The new visa applications open on January 31st and will provide a new path to UK citizenship. It will be open to British National Overseas (BNO) passport holders in Hong Kong and their immediate family members.
A surge in visa applications will undoubtedly lead to higher demand from Hong Kong buyers looking for residential properties and investment opportunities for properties in the UK. Hong Kong buyers are likely to relocate permanently in the UK, so any buy-to-let investors in Hong Kong will likely be keen to expand their portfolios here too.
Hong Kong nationals have proven themselves keen buyers of UK property. In the first nine months of 2020, Hong Kong buyers were the second busiest foreign buyers of property in the UK, only behind French buyers. During this time, Hongkongers purchased 6,438 homes amounting to £8.1billion across the UK.
London is still the most popular location for Hong Kong buyers, attracting £305.6million of purchases between January and September 2020. Other major cities follow closely behind.
Hong Kong buyers are also drawn by Manchester and Liverpool’s booming economies, world-class universities, fantastic employment prospects and numerous development projects. It is likely that interest in Manchester and Liverpool, as well as other northern cities, will increase from Hong Kong nationals following the January 31st visa opening date.
Benefits of the UK property market
Hong Kong property buyers have long been drawn to the benefits of the UK property market. In contrast to the high level of political unrest in Hong Kong, the UK has long been considered a stable country and a safe choice for an investment opportunity in property.
As well as the strength and resilience of the UK’s property market, currency exchange rates are particularly favourable for Hong Kong investors at the moment. In addition, the relatively low mortgage interest rates make the UK very attractive for property investments.
If you’re interested in a UK investment opportunity in property, contact North Property Group today to find out more.