Foreign buyers spending big in post-Brexit property

 
Foreign buyers spending big in post-Brexit property [Photo: CharlieAJA via iStock]

The weaker pound in the aftermath of the UK's decision to leave the European Union (EU) has meant a rise in the number of people from overseas spending big in British property, as they see themselves more able to get more for their money thanks to currency exchange rates. 

It had been feared that the property market would shrink, or even worse collapse in the wake of the decision to back Brexit, due to the fact British buyers would adopt a wait and see attitude that meant they would hold off until they knew how Brexit would affect their finances. 

And while it's true that many people domestically have decided to back out of deals to purchase property in the wake of June's result, estate agents have reported a large rise in foreign activity. The Independent reports that buyers of Chinese, Middle Eastern, Italian and Spanish residency have increased their intentions to spend in the UK. 

Russell Quirk, founder and chief executive of eMoov.co.uk, said: “It would seem that while a number of European buyers may be tentatively dipping their toe into post-EU property investment in Britain, those from further afield are looking to dive in head first and take advantage of the current indecision in the market due to a weaker pound."

He added that the company had seen a 50 per cent increase in the number of enquiries coming from the Far East, with Singapore and China in particular having seen a jump in activity. Harrods Estates, similarly, said that within a 48 hour period there had been a real rise in demand, even from Africa and North America. 

Experts also expect to see a rise in the coming weeks in the number of eurozone buyers spending on British property thanks to the current strength of the single currency against the pound. Buyers after Brexit were able to save more than £50,000 on British homes after the pound dropped drastically.