Many foreign buyers are looking beyond their personal property requirements and bulk buying UK real estate with an eye on the future
International real estate experts on residency and citizenship through investment, Astons, has revealed the growing trend of property investment UK involving bulk buying by foreign buyers in order to secure an even bigger stamp duty saving than the one currently on offer via the stamp duty holiday.
Currently, foreign buyers benefit from the same stamp duty holiday reductions as domestic UK homebuyers which has helped bolster market activity from international shores. However, with a two per cent surcharge for foreign buyers also due to be implemented in April of next year, foreign buyers transacting now are essentially securing a double stamp duty saving.
But with a weak pound and strong signs of returning market health, many foreign buyers are looking beyond their own personal property requirements and bulk buying UK real estate with an eye on the future.
By purchasing six or more residential units in one transaction, these buyers are able to secure non-residential stamp duty rates starting at just two per cent from £1500,001 to £250,000 and five per cent above the £250,000 threshold.
Managing Director of Astons, Arthur Sarkisian, commented: A whole host of global influences are spurring foreign interest in the UK property market at present. While the residential stamp duty holiday has helped boost this interest, we’re now seeing many invest above and beyond a family home to lay far stronger foundations for their personal and professional future in the UK.
He said, by ‘bulk buying’ in the residential market, they are able to secure a far lower rate of stamp duty and with the weaker pound, investing now is making very good business sense. While the residential rush from foreign buyers will no doubt dissipate come April, we expect this higher level of investment will continue as many lay future foundations in anticipation for life after Covid.
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