15 Jul 2019
The Knight Frank report on UK property states despite a decline in activities and uncertainty in markets, well-priced stocks are getting buyers, although, the buyers are price sensitive. Overall the traditional activities are muted, while, the average number of applicants registering on the website of Knight Frank increased and is at the highest levels of the last five year. The average viewing of the property has subsequently increased to the highest since 2014.
The data of Rightmove show the stock level is low, while, the demand property continues to build and political clarity will soon create more demands. The number of property listed on the websites in 2019 in England and Wales fell 18 percent as compared to the same period in 2018. The newly listed property fell 30 percent since 2016 before the referendum and this provides a greater opportunity for the sellers who can trade at competitive price in the current high demand situation.
Overseas investment grow
The world’s largest real estate firm CBRE agreed to buy London listed Telford Homes for £267m to gain access to the growing market for the build to rent projects in the UK. The firm said the country is in the early phase of shift where institutional investors will own the rental housing markets just like the US where it grew in the last two decade.
The firm is confident about long-term prospects even in the midst of risk posed macroeconomic environment and weak political factors. The UK housing markets faced stagnation last year, but the investors assume the housing sector can provide a platform for it to enter and capture the area dominated by amateur landlords as it plans to develop large scale multifamily asset class like Germany and the US. The New York-listed property group claims it entered a deal to buy Telford for 350p per share.
In general, there has been a drop in foreign-owned property in the UK, which has been attributed to the new tax laws. Prior to April 2019, the foreign companies were not liable to pay corporation tax which attracted overseas firms to invest in certain commercial real estate. From 6 April 2019 non-residents are liable to pay Capital gains taxes on sales. It is believed the markets have not been widely affected by Brexit uncertainty and even in the midst of economic turmoil and global economic slowdown; the values are gaining (2% since 2016). Only the high priced property (over £2m) were lower by 5%.
Overseas investment continues to grow in the region where more than 50% of the investment in Ireland Commercial property sector originated from outside – as per the Central Bank report. A financial stability note by the Bank found the largest share €18 billion in Irish commercial real estate was held by investment funds at the end of the year 2018.
Offshore investment is growing in many prominent locations like Birmingham where in May 2019, 1102 properties were owned by offshore companies, while, the number was at 1099 in January 2018.
To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).
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