Dramatic rise in demand for U.K property investments and expat mortgages

Dramatic rise in demand for U.K property investments and expat mortgages

Over the last year we have seen demand for U.K investment properties and expat mortgages from expats and foreign nationals, grow exponentially, with no sign of slowing down.

Whilst the reasons people have for wanting to invest may differ, the majority of customers believe U.K property is a good investment move.

Many people may think that the polarized state of affairs and the uncertainty surrounding the future of the U.K in the near term, may have put people off. However, other factors are clearly driving this demand regardless of these circumstances.

What’s pushing demand upwards?

Undeniably, the fall in the value of the Pound makes the prospect far more appealing to those earning in foreign currencies especially USD or USD pegged currencies such as in the Middle East.

At the current exchange rate people who are buying from abroad are getting almost 20% more Pounds for their Dollars, when compared to a few years ago.


Another major factor is the low interest rates in the U.K meaning lower rates on mortgages too.

With base rates currently set at 0.75% there has been a small increase over the last couple of years from when interest rates were mostly sitting at 0.50% with a low of 0.25%. However, when compared to 5% 10 years ago and the historical data from before then, they are still very low.

UK Interest rates
Historical data: UK interest rates

So where are the opportunities?

The majority of demand we are seeing is for northern cities such as Manchester, Birmingham and Liverpool. Given the fantastic opportunities in these areas, that comes as no surprise.

Looking at the UK property market as a whole, there were a number of areas where house prices fell over the last 2 years. These areas were City of London, Kensington and Chelsea and Richmond Upon Thames to name but a few. In fact, all the areas that saw a decline were at the top end of the price range for the U.K property market, and all where either in London or the surrounding areas.

The growth opportunities are clearly in the North, driven by increased government spending on northern cities and many companies now moving their operations out of London to save on costs, the demand for housing in northern business cities is steadily increasing.

If you are interested in U.K property or want to find out about expat mortgages, our in-house mortgage advisor and our partner property company, Britannia Global, can help you find exactly what you are looking for.

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Hoxton Capital

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