The research by Astons, the leading international real estate provider of residence and citizenship through investment, providing bespoke residence and citizenship solutions in the UK, EU and Caribbean, shows that We found evidence that investors are increasingly buying real estate in bulk across the country. The UK aims to take advantage of the current stamp duty holiday before the foreign surcharge is introduced in April next year.
Foreign buyers currently benefit from the same stamp duty holiday relief as UK domestic buyers, and activity across the housing market has increased in recent months. But with a 2% surcharge for foreign buyers looming ominously in the spring, buyers who close now can essentially avoid the surcharge.
And with a weaker pound and strong signs of an impending market recovery, many foreign buyers are looking to buy UK property in bulk at a time when the potential for profit is highest. Foreign buyers can pay non-residential stamp duty by purchasing six or more residential units in a single transaction, from just 2% on purchases between £150,001 and £250,000, to £5 above the £250,000 threshold. You can secure from %.
One such deal recently overseen by Astons was six units bought in London for staff accommodation from a Hong Kong-based buyer, which sold for £6.988 billion. Due to “regional instability” and the option to apply for British citizenship from January, the buyers chose to invest in the London market “because of the liquidity and growth the capital offers”.
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Under the traditional residential purchase route, buyers would pay £946,991 in stamp duty under current regulations, and if they buy from April 2021 onwards, when the Foreign Buyer Surcharge is due to come into effect. That’s a huge saving of £338,914 by comparison.
However, because the buyer purchased the same six homes as a non-residential investment, the actual stamp duty total was just £338,914, which was £608,077 less than the current house tax rate and £762,842 less than the house tax rate. You get an additional 2%.
Commenting on the new trend, Astons Managing Director Arthur Sarkisian said:
“A range of global influences are currently driving increased overseas interest in the UK property market. The residential stamp duty holiday has helped to increase this interest, but many people are now They are seen investing beyond the family home to lay a much stronger foundation for their personal and professional future.
“Bulk buying in the housing market allows us to secure much lower stamp duty rates, and the weaker pound means investing now makes great business sense. There will definitely be a housing rush by foreign buyers. We expect this to dissipate in April, but we expect this high level of investment to continue as many prepare for a post-pandemic life and lay the foundations for their future.”
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