Just 2 in 10 foreign national investors in UK property come from Europe
Since its launch in early 2017, a significant 82% of foreign nationals investing in UK property through specialist lender, Octane Capital, have been based in Asia or the Middle East, with just 18% located in the EU.
In 2020 and 2021, potentially reflecting the impact of Brexit and our formal departure from the European Union, the percentage of investors in UK real estate from Europe fell to 15% and 14% respectively, the lender’s research found.
Foreign nationals investing in UK property are also increasingly acquiring units outside the capital: in 2017, just 8% of Octane’s foreign national borrowers acquired units outside London. In 2021, 36% of foreign nationals were buying property in the UK regions.
In terms of loan size, since 2017, nearly half (47%) of the loans made to foreign nationals were between £250k and £500k. 26% of the loans were between £500k and £1m, with 11% over £1m. 16% of the loans made to foreign nationals were lower than £250k.
Jonathan Samuels, CEO, Octane Capital, commented: “What’s very clear from this analysis is that the UK property market is infinitely more attractive to investors in Asia and the Middle East than those in Europe, and the falling percentage of EU investors since 2020 suggests our official exit from the UK could accentuate that trend. The other key takeaway is that foreign nationals are increasingly buying outside London, with the major hubs of Manchester, Birmingham and Bristol proving especially popular. More than four times the number of foreign nationals are now buying in the regions, and we expect that trend to continue given the way the pandemic has shifted many businesses to home, or hybrid working models. London is no longer the default setting for foreign nationals that is was a decade ago.”