New research from Lloyds Bank has revealed a strong appetite for property among British expats, with 38% planning to buy a new property in the coming two years looking to rent it out for a regular income.
43% say they are likely to buy a property in the next two years, with 26% wanting to buy in the UK. 71% of those that own rental properties in the UK have tenants in them at all times, compared to 47% of those that have foreign properties.
Favoured property purchase locations for British expats:
- UK – 25.8%
- Australia – 24.7%
- USA – 15.1%
- Canada – 8.2%
- Spain – 6.8%
- New Zealand – 5.4%
- Switzerland – 2.2%
- France – 2.2%
- Asia – 1.8%
- Italy – 1.1%
- South Africa – 1.1%
- South America – 0.4%
Richard Musty, director of Lloyds Bank International Banking, said: “Confidence in the UK property market is very strong. Our recent Investor Sentiment Index in March showed that consumer sentiment for UK property had grown by 50 percentage points since March 2013, so it’s not a surprise that Brits abroad are looking back home.
“While we welcome this investment in to Britain, it’s important that expats consider all their options and think about a range of investments in their portfolio and not just property.”
For many expats, the relatively weak Sterling also makes the UK property market even more attractive – their Euros or US Dollars now buy them more Pounds now than they would have done a few years ago. A £300,000 property is now approximately 25% cheaper to a European buyer than it was in 2007, prior to the financial crisis.
Musty said: “UK property prices are strengthening and British expats don’t want to miss out on this investment opportunity. Our research shows that huge numbers of expats are now ready to take the plunge as they look to benefit from high rents and a relatively weak pound. With that in mind, any potential investor must make sure that they get the right advice before deciding to invest back in to the UK.”
Expats based in the UAE (65%), France (37%) and Switzerland (29%) are the most likely to buy in Britain, which may be related to geographic proximity or restrictive local laws in place for purchasing property in some countries. For example, 72% of those in the UAE already own a UK property – the highest in the survey.