Solomon has announced a surge in enquiries from Far Eastern investors looking to capitalise on the current weakness of sterling.
The pound has obviously fallen sharply since we learned the result of the EU Referendum. That has numerous economic consequences, but one of them is that it’s making UK properties much more attractive to foreign investors. Their currencies now buy substantially more than they did. For them, this equates to big reductions in the cost of new UK acquisitions.
Since the start of the week, we’ve been receiving calls and emails from overseas buyers asking about residential properties in areas such as Manchester and Leicester. Here, we know developers who are keen to make deals, and they’ve been offering up to 5% in extra discounts for investors who are prepared to offer payment in full.
What has been striking has been the growing interest in opportunities outside London. Despite the uncertainties ushered in by Brexit, cities like Manchester still look very attractive, particularly now that the value of sterling has fallen. Many foreign buyers clearly recognise the underlying strengths of the market: prices there are relatively low, rental demand is buoyant and their economies are faring well. They also know that the continuing imbalance between housing supply and demand isn’t going to change any time soon.