Mortgage enquiries from overseas buyers have risen 50 per cent due to the Brexit vote, according to DeVere Mortgages.
There are five main reasons behind this, according to DeVere managing director Mike Coady.
He says: “We have experienced an almost 50 per cent increase in mortgage enquiries from British expats and overseas buyers since the result of the historic referendum that will see Britain leaving the European Union.
“We can attribute this significant surge in demand primarily to five key motivators.”
Coady says the first is that UK property has always been in high demand from overseas buyers.
“This is because of the ongoing fundamental strengths of British residential property investments. But many potential purchasers had been putting off enquiring about mortgages and waiting for the referendum result to see how the land lies. Now we have the outcome, a high proportion of these have swung into action.”Secondly, Coady says house price rises beginning to cool off is a trend that attracts buyers.
He adds: “Third, the pound has plummeted since the Brexit vote’s decision was announced. It is down approximately 11.5 per cent against the dollar and 10.5 per cent against the euro. As such, those buying in the UK with their local foreign currency are finding more value than before.
“Fourth, similarly, those raising a deposit in their local foreign currency are finding it easier to do so due to the Brexit-battered pound.
“And fifth, it is our experience that some UK sellers are more nervous since the shock result. With this in mind, some are willing to take lower offers from potential buyers than they were previously, especially overseas buyers who tend not to be part of a chain.”
Coady says that most enquiries DeVere has seen since the Brexit vote are from expats and nationals from the United Arab Emirates, Qatar and other parts of the Middle East.