Covid-19 has undoubtedly hit the UK economy hard with retail sales suffering a historic fall, airlines struggling and some of our favourite high street stores closing for good. However, it’s not all bad news, according to Emerging Communications, a Chinese marketing consultancy, Chinese investor interest has spiked in the UK property market. The consultancy predicts that a Chinese-led house buying boom is about to take place in the UK.
Despite the ongoing Coronavirus pandemic, the property market continues to prove its resilience and strength, especially to overseas investors. The UK buy to let market is often viewed as a safe option for overseas investors.
The Bank of England have cut interest rates to the lowest level in history and the pound has dropped against the dollar. Whilst Sterling has suffered during this instability, other major currencies are performing well, making property investment an attractive option for overseas investors looking for a good deal in the UK buy to let market.
Domenica Di Lieto, CEO of Emerging Communications, highlights that the recent drop in sterling and China’s recovery from the virus, has ignited Chinese interest in buying residential property in the UK.
Di Lieto says sterling’s weakness, coupled with a post-brexit Britain, has increased Britain’s attractiveness to China’s wealthiest, feeding a potential property boom from Chinese investors in the UK.
Chinese students drive UK property purchases
Research undertaken by Higher Education Student Statistics, highlights that the UK is China’s number one destination for students studying abroad. There are more than 120,000 Chinese students studying at universities in the UK, and this has grown by 10% in recent years, accounting for more than one in every three non-EU students.
Due to the high number of Chinese students in the UK, it is of no surprise that the majority of Chinese investors purchasing UK properties are the parents of children studying. Apartments and houses are bought for use while children are at university or for investment purposes, with Chinese investors recognising the high returns UK property investment presents.
Britain’s popularity for overseas students has also been undoubtedly boosted by the Conservative government’s extension to the post-study overseas student work visa to two years.
Our Sister Company, Manchester Apartments, has a prestigious portfolio of high-spec and centrally located apartments which are exceptionally popular with international students and professionals. With 70% of tenants originating from outside the UK, the majority of tenant’s hail from China, Saudi Arabia and European countries.
Manchester is home to the largest student population in Europe and because of this a high number of graduates choosing to stay in Manchester after completing their studies, the rental demand in Manchester is through the roof.
Fortunately for the future and current tenants of Manchester, we’re in the process of constructing several new residential developments, for both students and professionals alike. One of these buildings is situated in the much sought-after Ancoats area, Ancoats Gardens is a luxury residential development with two roof gardens, 155 high-spec apartments, an exclusive on-site gym, coffee roastery and shared social space for tenants.
Ancoats was recently regarded by The Times as one of the top 20 coolest places to live in the UK, increasing rental demand in the area, making it a lucrative choice for potential investors.
If you’re interested in investing in our Ancoats Gardens development, get in touch today.