What makes the UK so attractive to overseas property investors in 2022?

Property in the UK has long been considered a stable way to store value. Attractive yields and long-term relative political stability create the perfect environment for property investment. As such, overseas property investors UK purchases are continuing to increase.

It is estimated that foreign ownership of UK properties has trebled in the past decade. Buyers have been mostly spread across twenty different countries, with those from the Middle East and South-East Asia being particularly active in the UK property market. With house prices projected to continue rising over the next five years, overseas property investment looks set to continue along a similar trajectory.

Is property a good investment UK 2022?

According to one of the UK’s largest estate agents, house prices are predicted to increase by approximately 5% in 2022, which means property is currently a great investment in the UK. While the economy continues to recover after the coronavirus pandemic, the country has been left with an overdemand and undersupply of homes. This is just one of the factors behind rising property prices in the UK, however - and experts are predicting long-term growth.

Is buy to let still worth it 2022?

In addition to house prices rising by 5% over the next twelve months, experts are also predicting a rise in rents of approximately 5.5% - which is great news for buy-to-let investors. For those seeking investment opportunities in the UK, the growing post-pandemic economy is also great news.

Young professionals - often referred to as Generation Rent - are the strongest demographic of renters in the market. As this demographic spends longer and longer in the rental market, it should come as no surprise that rents are on an upward trajectory.

However, it’s not just young renters on the increase. The number of over-50s looking for rental properties has never been larger. There are currently over 1.2 million over-50s in the rental market, and an increasing population means that demand for rents is set to continue to increase over the next decade.

Why is the UK a good place to invest?

The UK is a great place for overseas property investment, as it offers secure and safe growth to investors. Whenever stock markets start eliciting a downward trend, investors are drawn to tangible assets to provide a stable income, and as a means of safeguarding their capital.

There are several reasons why the UK is a good place to invest in property in 2022, including the following:

  • High rental yields: Rental income from UK property offers some of the highest yields in the world, particularly where affordable housing is concerned.
  • Decreased value of the pound: In recent years, the value of the pound has been at its lowest in over 30 years. This provides those outside of the UK with an interest in overseas property investment to take advantage of exchange rates and real estate growth within the country.
  • Lack of building opportunities: UK property is likely to encounter long-term capital appreciation, as there is a notable shortage of land available for developers to build new projects.
  • Housing shortage: As touched upon earlier, the population of the UK is steadily increasing while too few properties have been built in recent years to cope with demand. At current building rates, it could take up to 15 years for the market to catch up.

Can overseas buy property in the UK?

It is perfectly legal for non-UK residents to purchase property in the UK. However, it is worth mentioning that overseas property investment is much easier for cash buyers - those who do not require a mortgage or additional forms of borrowing. This is because some lenders may be unwilling to lend to non-UK residents, and those that do might require larger deposits or charge higher interest fees.

However, for overseas property investors, UK property can be incredibly lucrative. There are several benefits to investing in property here, including rising property prices and high rental yields which ensure a steady, regular income.

How much of UK property is owned by foreign investors?

Over the past decade, approximately 250,000 UK properties have been purchased by foreign investors - with 8,500 of those in the past year alone. London is traditionally a target for non-residents who want to invest in UK property. Since 2010, average property prices in the capital have increased by 67%.

However, cities further North perhaps offer the best investment opportunities for overseas investors. Certain areas of Leeds, Manchester, Liverpool and Newcastle currently offer some of the highest rental yields in the country, with yields averaging around 7% in some boroughs.

Is it worth investing in property abroad?

Owning property abroad can be lucrative, particularly if you’re thinking in the long term. New market hotspots are consistently emerging and could provide great returns down the line. In addition to this, established markets in tourist hotspots are also a safe bet when it comes to overseas investment.

If a foreign property in a stable area is more affordable than a property in your home country, or if it's likely to appreciate in value at a level greater than property at home, it could make for a very worthwhile investment indeed. However, it is important to do plenty of research before making any foreign property investment decisions.

How can non-UK residents invest in UK property?

Non-UK residents are permitted to purchase property in the UK. If you are over the age of 18 and have the capital available (or are available to borrow it), there should be no restrictions on access to the UK property market (with the exception of countries facing political sanctions).

Before purchasing UK property, foreign investors should perform some due diligence, and familiarise themselves with the purchasing process, rental yields and property taxes/fees. For tools and information to make more informed property investment decisions in the UK, why not sign up to PropertyData today? With a two-week free trial, you’ll have access to a wealth of information to help you find suitable investment opportunities.

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Transparent data promise

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How do you know the square footage of properties?

We use proprietary technology to read the square footage of properties from agent floorplans. Although we cannot determine the square footage for all properties, we can usually get sufficient coverage. Agents are sometimes known to inflate square footage, and this should be borne in mind as a weakness of this data.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry.

How often is the data updated?

Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2022-05-31, although some sales that took place before this date may still be added in the coming months.

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry, and Energy Performance Certificate (EPC) data provided by Ministry of Housing, Communities & Local Government.

How do you know the square footage of properties?

We match the Land Registry data to EPC data provided by the MCHLG. Due to the fact that not all properties sold have had an EPC and vagaries of addressing in the UK, we are not able to determine the square footage of all properties, but we can usually get sufficient coverage.

How often is the data updated?

The private paid data is updated once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month. The energy performance certificate database is updated monthly.

What time period does the data cover?

You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2022-05-31, although some sales that took place before this date may still be added in the coming months.

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Room let listings on SpareRoom, the UK's biggest room letting website.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from SpareRoom, they are soon removed from this tab.

How is the raw data processed?

Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale.

What is the yield calculation used?

The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from Zoopla, Rightmove or Spareroom, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale. For the SpareRoom data, hypothetical properties consisting of two to six average double rooms with shared bathrooms are used to derived average rent. For all sources, listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What is the yield calculation used?

The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry.

How often is the data updated?

Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

Zoopla Zed-index

What time period does the data cover?

The data covers transactions in the last six years

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

The price paid data shown goes back to January 2015. The listings data is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the calculations used?

Average sales per month are for the last 3 finalised months. Turnover is average sales per month divided by total for sale. Inventory is 100 divided by turnover.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

Where does the raw data come from?

We receive data on the extent and corporate ownership of all land titles in England & Wales from the Land Registry.

How often is the data updated?

The data is updated once per month when released, typically in the first few days of each calendar month.

What time period does the data cover?

This is an ownership snapshot - the data represents ownership as recorded by the Land Registry at the last monthly export.

How is the raw data processed?

No additional processes are applied to this data.

Where does the raw data come from?

We source different expert forecasts Savills, Knight Frank, OBR

How often is the data updated?

The data is updated annually when new forecasts are released, typically towards the beginning of the year.

How is the raw data processed?

We calculate a consensus forecast using a simple mean average.