Foreign ownership of London property drives demand for homes in prime London property hotspots, keeping the city’s housing market in healthy condition and delivering capital gains for London overseas property investors.
When buying London property as an overseas investor, your first stop is likely researching which areas offer most value, and to be aware of some of the tax and finance issues affecting foreign ownership of London property.
At Black Brick we work with leading tax advisors and lenders who assist our clients in understanding the best way to structure and finance their purchases.
Black Brick Area Guides give you some insight into the best properties in prime London boroughs, which can help you when planning London overseas property investment.
Some areas are more popular than others for non-UK residents living in London. The ONS Annual Population Survey shows that in 2021, some of the boroughs with the highest non-UK-born population were:
Whilst a number of reasons contribute to these communities growing, by focusing on these ‘hotspots’ for international residents across London, overseas buyers may be able to maximise their return on investment when renting or reselling.
It’s important to remember that the London property market is highly complex. Pricing varies hugely from area to area and street to street and understanding the tiny nuances that determine value are critical. Defining your investment objectives is also an important part of the process. More yield driven investors will likely buy in different areas than investors who are more concerned about capital preservation and longer-term capital growth. Working with an experienced buying agent like Black Brick can help you establish what your investment objectives are, ensuring that you end up buying an investment property that is right for you.
Different countries of origin are linked with different London property hotspots. Here are some of the biggest markets for London overseas property.
Prime London property is popular among UAE investors as a second home or as a base for children attending UK universities.
London residents born in the Middle East and Asia can be found throughout the city, but especially in the north-west boroughs, where they constitute about a quarter of the population according to the 2021 Census:
Further east, there are also high concentrations of Middle East and Asian nationals in Newham (23.2%), Redbridge (22.7%) and Tower Hamlets (21.9%). Black Brick recently supported a Middle Eastern client looking for prime property in central London, acquiring a spacious 4 bedroom 4 bathroom penthouse for over £1m below an original budget.
US nationals are a smaller percentage of the London population, representing about 1 in 25 residents in some parts of the city:
Either side of this area, US nationals also make up nearly 2% of the population in Hammersmith and Fulham to the west, and Islington to the east.
Nationals of European countries (excluding the UK and Ireland) are concentrated on two areas in Central London and the north-east of the city.
In Central London, the main London property hotspots for European investors include:
To the north-east, European nationals constitute about 1 in 5 of the population in several more London boroughs:
Overseas property investors from EU member states should seek advice from a buying agent like Black Brick in light of the relatively recent change in the UK’s EU membership, and its implications for taxes and property finance.
Tax and financial advice is among the additional services offered by Black Brick, and we can help connect you to the right professional advisors to make sure that you comply with the taxes payable on foreign ownership of London property, in order to avoid any penalties and enforcement action in the future.
With additional taxes to be paid (e.g. the extra levy on stamp duty for foreign buyers) the right advice is essential – and we update our guidance on foreign ownership taxes in prime London locations regularly as the ruling government makes changes to the rules.
We can help international buyers access the most appropriate finance solutions for London overseas property investment, as well as securing the best possible price and terms on the residences you decide to buy.
By helping you to find property for sale in Prime Central London overseas hotspots, we also protect your investment, to ensure that your rental yields and/or capital gains more than cover the cost of your finance.
We don’t just assist clients in finding and securing the right investment properties. Post purchase we also have a dedicated in-house property management service to assist our clients in securing the best tenants and providing a seamless management service. As an overseas Landlord, engaging a professional managing agent is critical to the success of an investment as tenants value having their properties professionally managed are more likely to stay longer and be more amenable to rental increases at renewal if they have received a professional, attentive management service throughout their tenancy. Being a private landlord may have its advantages. But managing a property also has its downsides. Our property management service lets you enjoy the benefits of your rental investment without having to shoulder the demands that come with it.
As we have seen above, Prime Central London property hotspots are attractive to foreign nationals from all over the world, including the key markets of UAE, US and continental Europe (both EU and non-EU).
With Black Brick’s expert insight and negotiating skills, you can find a second home in an aspirational location, secure the best deal on your purchase and finance, and make sure you meet your tax obligations – giving you a UK home from home and an investment you can trust for the future.
To speak to one of our Prime London property investment experts today, contact Black Brick and we can start your property search in the UK.
We would be delighted to hear from you to discuss your own property requirements. For a non-obligatory consultation, please contact us.
