As per Surrenden Invest, overseas investment in the UK remains high due to sterling fluctuations. The properties in places such as Manchester are undervalued compared to other global markets and currencies. Chinese investors are analysing the impact of Brexit on Manchester properties, while the prevailing data indicates a growth in the North West property market. 

The direct flights from Beijing to the city and increased business activities, students, tourists, and other activities have increased the city's attraction. Like, the Manchester Beijing course developed quickly since 2016, and the number of guests travelling toward the north rose by 38 per cent. 

The number of Chinese students rose in the last two years by more than 9 per cent compared to the national average of 4 per cent.

Even US buyers are highly invested in the northern regions where they bought many properties in the North West, Yorkshire and Midlands. Such trends made Manchester one of the top 10 cities in the world, favoured by global investors. Outside London, it attracts one of the highest FDI. 

New Policies to Increase Tax Rates for Foreign Real Estate Buyers

The UK government is preparing to increase stamp duty by one to three per cent on foreign investors' purchase of properties in the country. As a result, many negative messages are floating in the real estate market (as per RICS).  

Some believe there are risks that the home prices may drop significantly in case of a no-Brexit deal. There is contradictory news related to the post-Brexit Britain property market, where it is believed the market will be open to the world.

As per current regulations, foreign buyers can get properties under the same regulations as locals, but the government is preparing to introduce rules to restrict foreign investment in the country.
The changes are similar to Germany's proposed tax changes, where the tax costs of investing in the country will increase. The changes will be implemented by April 2019, when the state will impose a tax on the gains on properties owned by non-UK residents.

Some believe the imposition of new taxes will create pessimism amongst Overseas property investors; instead, the government should introduce ways to increase the supply of homes.

Impact Of Hot Weather on Real Estate Market

RICS reports find buyers are cautious and unaware of trends in the real estate market, and vendors cannot identify the genuine impact of Brexit on asset value. The relocation of tenants from mainland Europe reduced in the last few months. Poor reports about the UK property market led to confusion, and the summer heatwave causing extreme hot weather led to low inquiry levels.

Markets Picking Up in September

UK market is expected to grow in the coming months and sales were high in some of the most expensive areas. The prices grew at 0.7 per cent in September, as per Rightmove.

The sales of homes priced around £750,000 grew 6 per cent compared to last month in London. As a result, the asking price average for the country grew from £301,973 to £304,061.

To know more about UK properties, click Hamilton International Estates.