OCTOBER 2019

INVESTOR TRENDS

Our UK and international property investors are discerning individuals. Keen on safe and strong investments, they are stylish and appreciative of luxury brands as much as craftmanship and quality.

They adore desirable super-prime properties with valuable addresses that are superior to any others, located in neighbourhoods which consist of similar properties with affluent owners. But theirs is the best of the best.

Properties that they invest in are unique and exclusive. They value space, and this includes privacy and security, along with as much seclusion as possible. The property locales they buy in are the most sort-after. And, of course, these assets are super-luxurious.

MARKET TRENDS

Despite current market conditions, market trends are showing that there is still a healthy investor demand. According to Knight Frank’s Wealth Report, there is a lot of pent-up demand in the market for property, and this should start to move forward once the political uncertainly of Brexit has receded.

The UK property market is still popular, especially with overseas investors. The fall in the pound has encouraged foreign investors who have used this to make up for the increase in stamp duty for second homes. Ultra high net worth individuals have used market conditions to buy property at a discount, recognising this period as an investment opportunity phase.

While Government-enforced lending rules may have impacted some jumbo and super-jumbo mortgages, the global ultra-wealthy, in particular buyers from the Middle East, are still continuing to acquire prime central London properties. Qatari investment in London supersedes any other ownership.

The UK House Price Index for June 2019 (published 14 August 2019) showed that UK house prices rose by 0.9% in the year to June 2019, unchanged from May 2019; on average, house prices in London have risen by 0.7% since May 2019.

According to International Money Transfers organisation, international property is an incredibly popular market now, with 2018 seeing global property investment rising, trends expected to continue and more investors expected to buy an asset overseas. It adds that Capital Economics has suggested that the UK residential market is down 15% year-over-year, with an additional drop of 7.5% expected over the next 18 months, assuming an orderly Brexit. A hard Brexit could crash the Pound Sterling, but this would create a once-in-a-lifetime buying opportunity for foreign investors.

Despite Brexit and the fluctuating economy, it’s not just overseas investors keen on property in the UK. There is still competition from British investors. Rightmove has advised that UK buyers are now not hesitating as they did earlier in the year and that there has been a buying spree in August by British investors who are looking to complete their purchases ahead of Brexit. Data shows that sales are at their highest point since 2015.

INVESTOR RISKS

Buying residential property in the UK is quite an experience for foreign investors. Being from New Zealand and used to buying and selling property within weeks of viewing, we found the protracted processes and timelines challenging. Additionally, there are certain practices that are legal, though unpleasant and inconvenient, whereby a seller or a buyer can undertake the following actions after an offer has been accepted, thereby wasting your time, effort and money:

  • Gazundering – This is the term used when a buyer lowers their offer price prior to exchange of contracts. It can happen for several reasons, including a survey that devalues the property, or a downward market.
  • Gazanging – This occurs when the seller decides to cancel the sale. It happens usually because property prices are increasing, and they can make more money if they hold off selling until later.
  • Ghost Gazumping – This term refers to when a seller raises the agreed sale price prior to exchange. A buyer can decide to either pay this or withdraw from the sale and seek reparation through their Home Buyers Protection Insurance (if this policy was taken out).
  • Gazumping – This happens when a seller accepts an offer after they have already accepted an offer from another party. Gazumping can happen at any time up to exchange of contracts, and a potential buyer can lose money spent on conveyancing work and survey costs. The seller may have done this if they have received a higher offer, or if someone was able to complete faster, or is in a better position to proceed.

At GS Ansell Property, we have the knowledge, tools, structure and relationships to assist you with your acquisition and divestment. Our Client Portfolio Managers have faced similar challenges in the UK property market and help by providing advice as well as accelerating your purchase and sale.

TREND-SETTERS

We are already distinguishing exclusive properties for some of our trend-setting investors, staying ahead of the curve and aligned to the needs of our Clients. We are well networked, interacting with like-minded professionals and organisations.

Let us help you with the search and purchase of your perfect property.  Or your perfect buyer, if you are divesting. We will handpick the best of the best for you.

Call us today on (+44) 776 342 0000 or email us at contact@gsansellproperty.com.