Buying property in London and the UK has become much cheaper for foreign investors – with Thailand coming out on top
Parts of the UK have become cheaper for foreign investors since the EU Referendum vote, research from London lettings and estate agent Benham and Reeves reveals.
This is in part due to the falling value of the pound against some other currencies, as well as some areas of the property market slowing down.
Benham and Reeves looked at the cost of buying across London and the UK in each respective currency in 2016, before looking at how this cost has changed today taking into account both the change in property values and the fluctuating currency, to see which foreign investors are quids in as a result.
London
Buying property in London in plain old pounds sterling has become 0.48% more expensive between July 2016 and July 2019, with prices now averaging at £477,813. A consequence of a slight movement in the capital’s property market prices.
However, owing to shifts in exchange rates, it’s now -5.84% cheaper to buy a property in euros, -4.37% cheaper in US dollars and -1.52% less where the Chinese yuan is concerned compared to three years previously.
The currency arbitrage winner? It’s become much cheaper in Thai baht, by -16.40% versus 2016.
Inner London
This trend is even stronger within Inner London, traditionally an area where many foreign investors purchase property.
While average prices have fallen by -0.57% in pounds to £568,387, over the three-year timespan it’s become far cheaper in Thai baht (-17.28%), the Russian ruble (-6.91%), euros (-6.83%), the Emirati dirham (-5.38%) and US dollars (-5.37%).
It should be noted that London house price changes have been extremely variable depending on the borough. Indeed, between July 2016 and July 2019 it’s become 21.70% more expensive (in pound sterling) in Camden but cheaper (-18.50%) in the City of London.
United Kingdom
Some other areas of the UK property market seem to have performed better since the Brexit vote, as the typical property price has risen by 8.17% in pounds sterling between July 2016 and July 2019 to £232,710.
In other currencies, there have generally been smaller increases.
Buying in the UK on average is 1.37% more expensive in euros and 2.96% more in US dollars.
Again it’s far cheaper (-10.00%) in Thai baht, however.
Marc von Grundherr, Director of Benham and Reeves, the London lettings and estate agent and property investment experts with 17 branches across the capital, commented:
“Despite the consistent doom and gloom surrounding the London property market, prices have remained robust and while growth has slowed, we are yet to see any collapse in the value of bricks and mortar within the capital.
Not only has the market weathered the storm, but due to the fluctuation in currency, many foreign investors are currently able to buy at a more attractive price then they would have three years ago.
Undoubtedly, a shaky pre-Brexit ‘deal or no deal’ sentiment has led to currency traders downgrading sterling and that’s seen as a negative by most economists and media commentators. But if you’re a canny property investor from Thailand, the US or, ironically, Europe, then now is statistically the wisest time to buy in a long time.
If you subscribe to the belief that the UK will see a ‘post-Brexit bounce in investor and consumer optimism, it’s clear that actually, there may never be a better time to pursue a London property purchase.”
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London
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Currency
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Average House Price – July 2016
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Average House Price – July 2019
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Relative % saving in property price inc currency change
|
|
THB – Thai Baht
|
฿22,136,862
|
฿18,506,163
|
-16.40%
|
|
RUB – Russian Ruble
|
40,418,605 ₽
|
38,022,423 ₽
|
-5.93%
|
|
EUR – Euro
|
€ 566,832
|
€ 533,717
|
-5.84%
|
|
AED – Emirati Dirham
|
2,319,159 د.إ.
|
2,217,529 د.إ.
|
-4.38%
|
|
USD – US Dollar
|
$631,028
|
$603,477
|
-4.37%
|
|
HKD – Honk Kong Dollar
|
$4,898,908
|
$4,717,923
|
-3.69%
|
|
SGD – Singapore Dollar
|
$849,296
|
$818,971
|
-3.57%
|
|
INR – Indian Rupee
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₹ 42,450,068
|
₹ 41,603,629
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-1.99%
|
|
CNY – Chinese Yuan
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¥4,201,306
|
¥4,137,380
|
-1.52%
|
|
MYR – Malaysian Ringgit
|
RM2,515,077
|
RM2,495,616
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-0.77%
|
|
GBP – British Pounds
|
£475,530
|
£477,813
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0.48%
|
|
Inner London
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|||
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Currency
|
Average House Price – July 2016
|
Average House Price – July 2019
|
Relative % saving in property price inc currency change
|
|
THB – Thai Baht
|
฿26,611,532
|
฿22,014,193
|
-17.28%
|
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RUB – Russian Ruble
|
48,588,683 ₽
|
45,229,956 ₽
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-6.91%
|
|
EUR – Euro
|
€ 681,409
|
€ 634,888
|
-6.83%
|
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AED – Emirati Dirham
|
2,787,946 د.إ.
|
2,637,884 د.إ.
|
-5.38%
|
|
USD – US Dollar
|
$758,582
|
$717,873
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-5.37%
|
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HKD – Honk Kong Dollar
|
$5,889,156
|
$5,612,252
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-4.70%
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SGD – Singapore Dollar
|
$1,020,970
|
$974,215
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-4.58%
|
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INR – Indian Rupee
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₹ 51,030,779
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₹ 49,490,016
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-3.02%
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CNY – Chinese Yuan
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¥5,050,543
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¥4,921,662
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-2.55%
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MYR – Malaysian Ringgit
|
RM3,023,466
|
RM2,968,685
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-1.81%
|
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GBP – British Pounds
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£571,652
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£568,387
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-0.57%
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Outer London
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|||
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Currency
|
Average House Price – July 2016
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Average House Price – July 2019
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Relative % saving in property price inc currency change
|
|
THB – Thai Baht
|
฿19,518,716
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฿16,394,468
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-16.01%
|
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RUB – Russian Ruble
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35,638,260 ₽
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33,683,772 ₽
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-5.48%
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EUR – Euro
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€ 499,792
|
€ 472,816
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-5.40%
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AED – Emirati Dirham
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2,044,870 د.إ.
|
1,964,492 د.إ.
|
-3.93%
|
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USD – US Dollar
|
$556,396
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$534,616
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-3.91%
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HKD – Honk Kong Dollar
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$4,319,510
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$4,179,571
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-3.24%
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SGD – Singapore Dollar
|
$748,849
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$725,520
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-3.12%
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INR – Indian Rupee
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₹ 37,429,461
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₹ 36,856,335
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-1.53%
|
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CNY – Chinese Yuan
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¥3,704,413
|
¥3,665,273
|
-1.06%
|
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MYR – Malaysian Ringgit
|
RM2,217,617
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RM2,210,847
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-0.31%
|
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GBP – British Pounds
|
£419,288
|
£423,291
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0.95%
|
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United Kingdom
|
|||
|
Currency
|
Average House Price – July 2016
|
Average House Price – July 2019
|
Relative % saving in property price inc currency change
|
|
THB – Thai Baht
|
฿10,014,591
|
฿9,013,098
|
-10.00%
|
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RUB – Russian Ruble
|
18,285,148 ₽
|
18,518,145 ₽
|
1.27%
|
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EUR – Euro
|
€ 256,431
|
€ 259,937
|
1.37%
|
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AED – Emirati Dirham
|
1,049,174 د.إ.
|
1,080,008 د.إ.
|
2.94%
|
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USD – US Dollar
|
$285,473
|
$293,913
|
2.96%
|
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HKD – Honk Kong Dollar
|
$2,216,238
|
$2,297,780
|
3.68%
|
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SGD – Singapore Dollar
|
$384,217
|
$398,865
|
3.81%
|
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INR – Indian Rupee
|
₹ 19,204,170
|
₹ 20,262,308
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5.51%
|
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CNY – Chinese Yuan
|
¥1,900,647
|
¥2,015,037
|
6.02%
|
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MYR – Malaysian Ringgit
|
RM1,137,807
|
RM1,215,445
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6.82%
|
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GBP – British Pounds
|
£215,127
|
£232,710
|
8.17%
|
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