Will UK expats lose out if they don’t sell up now?
Before the onset of the global economic crisis in 2007 the number of UK citizens opting to move overseas was rising sharply, with many choosing to sell their UK properties in order to fund an investment in overseas real estate.
But after housing markets in common expat havens like Spain and Greece collapsed, and with unemployment becoming an issue in many of the world’s developed and emerging economies, some expats opted to return home.
Others though have held off returning to the UK in hopes that their overseas assets might regain some of their original value now that circumstances are improving.
However, with UK house prices rising on a national basis and property values reaching record highs in some areas, expats may have to bring forward plans to return home or else risk being priced out of the market.
The Bank of England’s Funding for Lending scheme was designed to boost the UK’s flagging recovery and help people climb the property ladder. The initiative has been so successful that the central bank recently announced its intention to restrict the scheme in order to prevent a housing bubble occurring.
But with demand outweighing supply, interest rates staying at record lows and upbeat UK data causing the Pound to strengthen against rivals like the Euro and Australian Dollar, expats are finding it tough to afford property back home.
A recent report by The Telegraph highlighted an increase in the number of British expatriates making enquiries with mortgage providers.
The Telegraph provided the following quote from mortgage broker Aaron Strutt; ‘Demand for property in London and the Home Counties is reaching new heights. Best buy mortgage rates and increasing house prices are really driving the property market into new territory.’
So if UK expats don’t make a move to buy a British property now could they end up paying for it in the future?
Possibly, but house prices are highly subjective and vary according to location. Some industry experts also believe that UK house prices are reaching a peak and that such high values can’t be sustained long term.
What do you think?
Are you considering buying a UK property? Or are you waiting to see how things develop?
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