Why is UK property so popular for buyers from Hong Kong?

UK Property Investment – Long Term Stability and Growth

The UK property market is massively popular for buyers across the world, as the UK market is seen as a safe haven for investment due to long-term stability,growth and a robust legal system.

In particular, there has been an influx in buyers from Hong Kong, mainly for political and economic reasons.

Hong Kong is described by Bloomberg as “the most expensive housing market on Earth” with average property prices of $1.2 million and an average prime property costing $6.9 million. This is due to the severe shortage of housing on the island as the land is unsuitable for building. This has lead to significant outward investment into countries such as the UK.

This demand has been further fuelled by the political unrest in Hong Kong during the protests over the past year, causing major instability, in addition to the uncertainty created by the COVID-19 pandemic; therefore, residents in Hong Kong are looking for a safe home for their hard earned money.

Visa for BNO passport holders to apply for permanent settled status

In response, the UK government launched a special visa for just under three million people, which offers permanent citizenship after a period of five years.

The Prime Minster, Boris Johnson, formally announced the plans for a special visa on 1st July, who declared “This is a special, bespoke, set of arrangements developed for the unique circumstances we face and in light of our historic commitment to the people of Hong Kong.” As a result, from January 2021, any of Hong Kong’s 2.9 million BNO passport holders and their immediate dependants will be eligible to apply for the visa.

Hong Kong residents who were born before 1997 hold the British National Overseas (BNO) passport. BNO passport holders can visit the UK for up to six months at a time without needing a visa under current legislation, which will be updated from next year, with BNOs able to acquire the new visa giving them the opportunity to travel to the UK with the view of permanently settling in the UK within 5 years.

Individuals who don’t hold a BNO passport can seek permanent residence via the UK’s citizenship by investment programme. For an investment of £2 million, the programme provides the opportunity to buy a residence permit for their entire family within eight weeks through the Tier 1 (Investor) visa.

Where are the property investment hot spots for Hong Kong British National Overseas (BNO) passport holders to invest?

The UK is one of the most attractive locations for property investors from Hong Kong and across the globe to buy.

The UK forecast by Savills is for an average of 20.4% increase in values over a five year period to 2024:

• South East England = 17.3% click here for opportunities from £175,000 and 6% returns within 36 minutes to London
• North West England = 27.3% click here for opportunities from £125,000 and 6% returns in Manchester
• West Midlands = 21.7% click here for opportunities from £128,000 and 6% returns
• Scotland = 25.4% click here for opportunities from £159,995 with 6% returns in a city centre location

Now is the time for overseas buyers to purchase.

Now is the opportune time for overseas investors to buy, taking advantage of the weak sterling making it cheaper to buy and the Stamp Duty Land Tax holiday that is running until the 31st March 2021. The 2% increase in Stamp Duty Land Tax that will applicable for foreign property purchasers from 1st April 2021 is encouraging many property investors from Hong Kong to act quickly.

Please book your free no obligation consultation with one of our friendly experts today to find out how we can help you find your perfect buy-to-let property investment.