Thanks to huge rental yields and low market-value house prices in the UK, the property market is a hotbed for international buyers.
This is none more so true than with Chinese investors, with Chinese demand in UK property some of the highest in the UK.
Back in 2016, Chinese investment in UK property and property purchases totalled around £1 billion, with the total amount invested from Chinese investors in the UK reaching £8.63 billion.
This was a year-on-year increase of 12.5%.
Similarly, in 2017, £3.69 billion was spent on commercial real estate in London property, which was up from £2.69 billion in the previous year.
These numbers are set to continue in the future, with changes implemented by the Chinese government increasing the appeal of overseas investment in the UK property sector.
A report from Property Investor in 2021 noted that due to rising house prices in China, the Chinese government implemented over 300 new regulations to curb levels of investment. This has led to an increased focus on the UK, which offers higher rental yields than China.
It’s clear that the level of Chinese investment in UK property is on the rise.
For residential property, mainland Chinese buyers accounted for 3% of purchases on properties worth over £1 million in 2013. However, in 2019, this was at 13.4%.
In fact, in three London areas (Kensington, Chelsea and Westminster) Chinese buyers spent £500 million on residential property in 2019.