Peter Grant

Despite Brexit scaring some British property investors, investors from South East Asia are cashing in on the opportunities provided by a drop in the value of the British pound and increasing yields and rents in the UK buy-to-let market, especially student flats.

Grant Property has said that an increase in rents as high as 15% over the last 12 months alone, combined with steady long-term capital growth on average 7% per annum, are factors which are making UK property an appealing investment prospect.

Peter Grant, founder of Grant Property, said: “We are seeing a huge demand from overseas investors, some who are looking to buy multiple properties each. In the last year, we have sold over £38 million worth of properties to overseas investors and we are currently dealing with 25% more enquiries than this time last year.

“My own portfolio, and those of other investors has delivered returns of over 30% per annum over the last 22 years. From Hong Kong and Singapore alone, we have dealt with over £14m worth of transactions in the last 12 months.

“Investors see the uncertainty of Brexit as an advantage and are capitalising on the opportunity to snap up traditional flats in UK cities, particularly where there is a student population.

“Students are a big factor. UK universities and colleges are very popular with foreign students and UK students alike, and student accommodation is not subject to the same economic or political influences as the rest of the property market. Even in a recession, occupancy is very high, so rentals are virtually guaranteed.”

Overseas investors in UK property are now outnumbering UK investors and, according to Grant, that is likely to continue.

He added: “Most of our enquiries are coming from abroad now and that is showing no sign of changing.”