A bank has seen a surge in Honk Kong residents purchasing UK buy to let properties.
Skipton International, the Guernsey-licensed bank, says that in the first quarter of 2021, HK-linked mortgage completions trebled when compared to the same period of 2020.
The bank suggests both London and the South East of England are the most popular locations for purchasers, closely followed by the North West and Midlands.
The additional two per cent stamp duty surcharge on overseas buyers of UK residential properties – which came into effect a month ago – plus the original stamp duty land tax holiday deadline were said to be the two most likely causes of the increase in quarter one.
However demand is continuing to be strong even now as investors look to the UK, the bank insists.
Roger Hughes, Skipton International’s business development manager, states: “The UK is deemed by many as a solid, stable jurisdiction and in the current low interest rate environment, many investors are looking to the UK residential market. In 2019 we extended our UK mortgage proposition to include applications from non-UK national’s resident overseas, we are now seeing increased activity from not only British Expats, but also other nationalities, including Chinese nationals’ resident in Hong Kong.”
This post has originally been featured in Letting Agent Today.