UK House price news creates opportunities for expatriate buyers, thinks Offshoreonline.org
· 22% increase in number of sellers year on year
· 30,000 new properties per week coming onto market
· Average annul price rise of over 12% in London
· Expatriate borrowing rates of 3.24% now available
With a wealth of data being published over the past 8 weeks on UK house prices, UK regulated expatriate mortgage brokers Offshoreonline.org believes now is a good time for overseas buyers to look again at the UK market. A combination of several factors including a stream of news suggesting prices have recovered to pre-dip levels in may parts of the country and the suspension of HIPS has brought about a 22% increase in the number of sellers, bringing over 30,000 new properties onto the market each week, a figure that is 45% up on July last year, according to Rightmove.co.uk.
At the same time, property site Zoopla.co.uk has noted that asking prices are now being reduced by an average of 6% compared to their first listing, as the balance between numbers of sellers and number of buyers changes. The UK Land Registry, which produces the most accurate survey of prices based on actual registered sales, is showing monthly prices rising by 0.1%, giving a UK national average rise of 8.4%. According to the Land Registry, London experienced an annual house price movement of 12.2% per cent in June. In comparison, the figure for England and Wales as a whole is currently 8.4 per cent. London’s house prices are now around the same levels they were three years ago.
London's monthly change of 0.5 per cent is higher than last month's figure and brings the
average house price there to £338,027, while the average for England and Wales is £166,072.
Commenting on the data, Offshoreonlone.org managing director Tim Harvey said, “Although house prices fell on average by up to 25% - 30% in some areas between 2007 and 2009, much of the data now suggests that prices have recovered to within 5% or less of the pre – crash peak, showing the apparent resilience of this asset class. Buyers who are looking for a long term investment or a new family home should therefore be encouraged.”
At the same time, mortgage terms for expatriates have continued ease, with interest rates of 3.24% available for buyers with larger deposits. The number of lenders in the market looks set to rise too with at least two major organisations looking at plans to increase their expatriate mortgage books.
Tim Harvey ends, “Buyers need to be realistic – the housing market is not a one way bet and there is sure to be more turbulence along the way as domestic demand falters. However, in central London, for example, buyers come from all over the world, providing a useful cushion for when UK demand weakens. The recovery in the market and easier access to funds is important for expatriates, as it means expatriate buyers can now take steps to confirm mortgage facilities before they return to the UK, so they can move more quickly, should they find a property that matches their needs.”
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