Bargain time for overseas property investors
By John Swinfield a leading financial commentator
The uncertainty created by Britain’s decision to quit the EU will give overseas property buyers from such places as Singapore and Hong Kong a first-class opportunity to pick up bargains in London and other areas across the UK. Britain remains the world’s fifth most powerful economy and will now start trading with dynamic and growing countries across the world – unlike the flagging economies of the EU. Great Britain will also, of course, continue to build and improve on its existing trade arrangements with the EU and, hopefully, persuade it that the Brussels gravy-train must be changed, the bureaucracy pruned and red-tape slashed: factors which impair free trade.
If the grandees in Brussels don’t understand that Britain’s departure is a red warning flag, then other countries will also start looking for the exit door. When Britain joined the EU it signed up to a trading bloc; it did not sign up to the construction of a single, all-controlling Federal State. There is also now the very real possibility of a stridently free-market Prime Minister such as Boris Johnson coming to power. His accession would kill off any notions about controlling rents in London, or any attempts to put a brake on foreign ownership of London or regional property. Johnson was a highly successful mayor of London who is pledged to international trade, the free market and inward overseas investment. He is a powerful supporter of a private property sector as opposed to state development. He will demand a freeing up of mortgages and wants to boost the supply of private housing and apartments in Britain. He has no qualms about the purchase and funding of such developments by citizens and companies which are based in other countries.
The current volatility on the London Stock Exchange – and elsewhere – will calm down: let’s not forget, the market always bounces back, and sterling will begin to recover its value. Those who know how to make money always go against the consensus. And that’s what’s happening now with wily overseas property investors looking to step into the UK’s property sector for the first time or to bolster their existing portfolios.
London Property International Specialists