British expats are being tempted back into the UK property market as part of the fallout from June’s Brexit vote.
A cut in interest rates combined with stalling property prices and the falling value of sterling giving those with foreign currency more spending power, has piqued the interest of many British expats.
Specialist lender deVere Mortgages has reported a 55 per cent rise in prospective business from Brits living overseas since the UK voted to leave the EU.
“The decision by the Bank of England to cut interest rates has, we believe, acted as a catalyst for many individuals to now actively enquire about a mortgage,” said Mike Coady, managing director at deVere. “It has created something of a feel-good factor in the market, especially for British expats.”
Coady continued: “Before the Brexit vote many people had been delaying taking action until the referendum result was revealed so they could see how the land lies; and this interest rate cut has now provided extra impetus to act now to secure a home loan.”
It is not only British expats who are being tempted by sudden perceived value in the UK property market. Estate agents throughout the UK have reported a spike in interest from overseas buyers, with those from the Far East, Europe and the United States particularly interest. Demand for properties from overseas buyers has been particularly strong in London. The impact of Brexit on property prices is being seen most sharply in the capital city.
Coady for one expects the recent surge in mortgage enquiries to continue as a growing number of people in the UK and overseas begin to take action following Brexit and the Bank’s measures to recession-proof the UK.
Earlier this month the Bank of England cut interest rates from 0.5 per cent to an historic low of 0.25 per cent.
Article published 25th August 2016