One characteristic of the UK real estate market is its strong asset liquidity, along with sound and fair legal protections.
Recently, BBC Chinese interviewed several professionals who have been working in the real estate industry in the City of London for a long time, asking them to analyze the impact of the COVID-19 pandemic on the UK real estate market and the market trends post-pandemic. The following is an excerpt from BBC News.
The UK Economic Focus
It is reported that in response to the economic situation under the pandemic, the UK government has prioritized revitalizing the real estate market and construction industry as a key part of post-pandemic economic recovery; especially in England, which accounts for the vast majority of the UK population and economic activity. Therefore, many professionals expect a significant potential for recovery in the real estate market.
Real estate agents, moving companies, and property transfer transaction agencies in England have been permitted to resume operations, provided that relevant personnel adhere to social distancing regulations.
Lawyers from Baker McKenzie’s UK real estate department and relevant personnel from Berkshire Hathaway in China have stated that, at present, the impact of the COVID-19 pandemic on the UK, particularly on the London real estate market, appears to be "temporary." Due to the private ownership of land in the UK, the long-term supply shortage is difficult to change, and the demand for both commercial and residential real estate remains.
Outlook for UK Real Estate Investment
The latest data from the Office for National Statistics and the UK Land Registry seems to support this view: before the lockdown due to the pandemic, property prices in London were rising at the fastest rate in three years at the beginning of 2020.
Additionally, the renowned American investor Warren Buffett also entered the UK real estate market after Brexit. A representative from Berkshire Hathaway in China stated that real estate is an important asset and a stabilizing tool for the economy in all countries, including the UK, and its resilience is reflected in many aspects. Despite the COVID-19 pandemic, there are many favorable factors for the UK housing market to restart, and the outlook should still be bright, including the world-renowned traditional education and a stable economy among other social factors.
Under the COVID-19 pandemic, Europe has become a hard-hit area. From the perspective of limiting the flow of people, the UK's exit from the EU has turned out to be a blessing in disguise, which may help prevent the potential spread of the pandemic between European countries in the future.
Potential in the UK Economic Crisis
Analysis indicates that although the COVID-19 pandemic has caused a significant impact on the UK economy, many economists have issued pessimistic forecasts. However, at the same time, the UK government has also introduced a series of measures to stimulate the market and the economy, including financial subsidies for ordinary workers who are unable to work due to the pandemic, with the government covering 80% of their original wages to ensure their living expenses, including the ability to repay mortgages, and allowing for certain delays in mortgage payments, etc.
Due to the pandemic, the UK, like the US and Europe, has pushed the low-interest-rate era to its limits: the Bank of England lowered the base rate to 0.1% in March 2020 and maintained this historic low level in May. In the real estate market, this also aligns with the UK’s long-standing housing finance policy aimed at encouraging residents to increase leverage.
A representative from Berkshire Hathaway in China stated that while the COVID-19 pandemic has impacted real estate transactions in the UK, quoting Warren Buffett, "Never waste a serious crisis." For capable investors, this is also an investment opportunity. Lawyers from Baker McKenzie’s UK real estate department noted that one characteristic of the UK, especially the commercial real estate market, is its strong asset liquidity, along with sound and fair legal protections, with no unnecessary processes, treating domestic and foreign investors equally compared to many other countries.
In fact, even during the lockdown period, many international institutions or individual investors, including those from Hong Kong, Middle Eastern consortiums, and European funds, have participated in bidding for some quality assets in the UK through remote ordering methods.
A pandemic has shown us that many industry professionals remain optimistic about the UK economy. Meanwhile, as a financial center in Europe, the UK continues to attract investors! The advantages of the UK in terms of economic, political, and living stability remain evident! So, after the pandemic, how should investors looking to quickly enter the UK and venture into the UK real estate market choose?
Currently, the UK Representative of an Overseas Business Visa, which has low investment costs and fast approval speeds, is a high-quality pathway for quick immigration to the UK with low barriers! There are no specific investment amount restrictions, one person can apply, and the whole family can immigrate to the UK, with children able to enjoy free public education in the UK, making it quite popular among investors!
Who is suitable to apply for the UK Representative of an Overseas Business Visa?
It is suitable for senior management personnel of companies headquartered outside the UK who intend to develop the UK market;
It is suitable for company management personnel intending to establish a branch in the UK, and families with children studying in the UK.
As a quick and low-cost pathway to the UK, the UK Representative of an Overseas Business Visa not only has simple application conditions but also a relatively high approval rate! For immigrant investors, the market is ever-changing, and it is necessary to seize the current conveniences of UK immigration policies, plan for an identity early, and have more options in the future!
2020 is the year of health planning; health planning and identity come first! Choose the UK investment immigration project and apply for the "UK Representative of an Overseas Business Visa". For details, please consult the WorldWay Group service hotline: Mainland China: 400-138-2929 Hong Kong: (852)2802 8798
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*The above information is for reference only and should not be used as an investment basis. Investment carries risks; please choose carefully.*