Taking advantage of the low sterling following the EU referendum, Chinese investors are increasingly looking to buy British property.
- Demand for UK property from Chinese investors has been 40% higher than average since Brexit
- The falling sterling now means investors purchasing in yuan or the dollar can buy achieve greater affordability
- Chinese buyers are particularly interested in developments found in northern cities, investing £800 million into Manchester’s Airport City
The number of Chinese investor inquiries into UK property in July following the result of the EU referendum was 40% higher than average, according to China’s biggest international property portal.
Bernie Morris, head of Juwai’s EMEA division, said: “The data shows that the Brexit vote has definitely boosted Chinese buyer interest in UK property. The chief mechanism has been the reduction in the value of sterling against the dollar and the yuan.
“Now, with politics stabilising and a competent new government in place, the UK looks like the same old safe haven as ever – but cheaper.”
Making up 5% of owners of residential property in London’s West End, the UK is the most popular place to buy property in Europe for Chinese investors.
Buyers are especially keen on flats in northern cities, many of which have high rental yields, because of the Northern Powerhouse. With £800 million of investment by Beijing Engineering Construction Group into Manchester’s Airport City development, Chinese investors are confident in the future of the northern city.
Part of the reason Chinese buyers invest in the UK is for the quality and reputation of its universities, for which parents buy apartments for their children.
Mr Morris added: “There have been a lot of drags on the property market in recent months. First, it was the elections, then the referendum and now summer. But that is exactly why the weaker pound has come at the right time.
“These are not emotional buyers. They are looking for a bargain, and they have long-term faith in the UK.”