Since the vote to leave the EU, the UK has seen a rise in property buyers from overseas, primarily Chinese investors.
Although London has long been the favourite of Chinese property investors, this seems to have shifted slightly. Chinese buyers who are interested in investing in buy-to-let properties have increasingly been flocking to the North of England, with Manchester and Liverpool being their two top choices.
According to Juwai.com, which is a Chinese site aimed at overseas property buyers, enquiries into Manchester property have increased dramatically since last year. It seems that Chinese investors have decided to look outside London to get better returns on their investments. As the pound has been weakened by Brexit, investors are hoping to make their capital stretch as far as possible by venturing outside the M25.
Other than Manchester, Liverpool is the main city of interest for Chinese property investors in the North of England. Enquiries for buy-to-let properties in Liverpool from the Chinese market rose by over 150% from last year. Interestingly, London saw a dip of circa 48% during this same time. Even with the dip, it still remains the most invested in place in the UK by Asian buyers. Especially with those who have more money to invest, as London property offers the most expensive houses and flats by far. Other cities in the UK that are popular with Chinese buyers include Birmingham and Cambridge.
According to Rightmove.com, the average property in Manchester is valued at circa £197,000 pounds. Meanwhile Juwai.com data shows that Chinese investors spend on average over £220,000 on property in Manchester city. So they are positioned well for healthy investments in the Manchester property market.
When asked what their primary reason for buying property in the north of England was, Chinese buyers stated that investment was their main motivation. This makes sense as the property prices in this area of England are lower than the rest of the country, while the rent and increase in property value continues to be stronger than most other areas in the country.
Juwai.com also informs us that out of the Chinese buyers investing in London properties, over 50% intend on occupying the properties themselves. This is almost double the percentage of investors who are buying in and around the city of Manchester- less than 20% stated they are intending to occupy their properties. This shows that London is still a more attractive option for overseas buyers who may be looking to make a move here, while Manchester and Liverpool are becoming more and more attractive mostly for buy-to-let investments.
The accountancy company Deloitte has named Manchester as one of the top growth cities in Europe, and overseas investors are clearly seeing the potential return for investing in properties in this increasingly popular region.
