BN(O) investors looking to the North West for homes ahead of stamp duty surcharge
In response to the political unrest many in Hong Kong have been experiencing since the summer of 2019, the Government announced in August the introduction of a British National (Overseas) (BN(O)) visa, that will give around 3 million eligible BN(O) citizens the “ability to come to the UK to make a new life”.
Following this announcement and the stamp duty holiday in effect until March 31st, the property market has experienced a mini-boom with many BN(O) citizens looking to purchase homes and invest in the UK. When the stamp duty holiday ends on March 31st, we will go into April with a new 2% stamp duty surcharge on overseas buyers, which many buyers are trying to escape by purchasing early. Contrary to expectation and the ‘norm’, many have looked towards the north for their investments and such the North West has experienced a surge of potential buyers looking to purchase. With average house prices in London now reaching £476,700 compared to Manchester’s £175,600 and Liverpool’s £123,900, many buyers are investing their money into schemes that can provide them with double if not triple the investment potential than purchasing in London.
Home Secretary, Priti Patel, has stated that “BN(O) citizens will now have a choice to come and live, work and study in the UK, building a new life for them and their family” and there has already been a spike in BN(O) passport renewals. In the last 6 months, “42% of overseas property exhibitions in Hong Kong” featured UK properties and our property market is currently very attractive to overseas investors.
Many overseas buyers will be looking to purchase property before the 2% stamp duty surcharge comes into effect in April 2021 and will continue to sustain the market throughout this period.