HSBC BUY-TO-LET GUIDE TO THE UK MARKET
2016-03-27
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Hong Kong residents are buying more houses and apartments to lease out for income in Britain, and have became the fifth largest foreign investors in central London as of last August, driving up prices in some popular districts outside the UK capital.
Demand for income-producing residential assets in the UK has risen sharply over the past few years on the back of a burgeoning private rental sector and a desire among investors to diversify into new asset classes offering stable income streams.
Tourists from Hong Kong and mainland China have started a trend. As London becomes too costly, Manchester – beneficiary of “northshoring” – has emerged as an attractive destination.
While UK and Australia properties gives decent rental income and impressive capital appreciation, Hong Kong investors target them also for their next generation.
New research finds up to a third of young people in Britain will now rent for their entire lives, underlining the need for more investment in key UK city markets.