UK property investment may be one of the most reliable ways for international investors to secure consistent passive income. With a U.S. economic downturn seeming increasingly likely, financial experts suggest that a global recession could be imminent. For property investors, diversifying their portfolios into recession-resistant assets like real estate could help hedge against a recession in ways stocks, bonds and other more volatile asset types may not. For international investors seeking inroads into the UK property market, the recent Labour Party victory in the 2024 general election could be the opportunity they need.
Are you an international investor with designs on UK property? At Concept Capital Group, we specialise in offering real asset investment opportunities to alternative investors from globally diverse backgrounds. As such, we know the pitfalls and positives associated with international investment in real estate. For a breakdown of what makes UK property so appealing in 2024, this blog could be the push your portfolio needs.
International Investors Under Labour: Risky Business or Smooth Sailing?
Foreign investors have dealt with no small amount of controversy and scrutiny in recent years, bringing the future of international investment as a whole into question. Before Labour’s landslide victory earlier this year, Sir Keir Starmer announced plans to raise taxes and restrictions on new-build purchases by foreign buyers, citing the ongoing housing affordability crisis as his primary motivation for doing so. Since then, however, Starmer and the Labour Party have pivoted towards attracting mass-scale international investment in the UK.
Part of this effort will involve specifically courting them at a UK-based summit two weeks ahead of the government’s autumn budget. This International Investment Summit is expected to be a milestone in Labour’s plans to boost economic growth, and the UK property market is certain to be heavily considered by investors and policymakers alike.
Generally, market analysts are confident that the Labour government will have a positive impact on the rate of private international investment and market confidence in the UK. This confidence is mirrored by Labour Party representatives, with Rachel Reeves stating that its plan for restoring the country’s economic resilience ‘won’t take as long as people think’ in a recent interview. According to a 2024 report from Zoopla, the housing market is seeing evidence of increased activity in spite of the recent mortgage rate crisis. Recovery may be around the corner, which means international investors could be in the perfect position to stake their claim on UK property.
Is 2024 a Year of Recovery for the UK Property Market?
According to a five-year forecast by real estate firm Savills, 2025 (along with 2026) will likely see a stronger economic performance from the housing market, inviting a greater capacity for growth over the course of the year. Similarly, a PwC report on emerging trends in real estate signals that industry leaders are adapting to the higher interest rate environment of the past few years, with preferences shifting towards creating new dynamics within the sector.
The stagnant house prices persisting throughout the past year are likely to rise modestly throughout the rest of 2024 to deliver a confidence boost to property investors going into 2025. This will likely occur alongside a continued adjustment to the Bank of England’s new interest rate cut, with potential future changes increasing the likelihood of further price hiking. An ongoing increase in the supply of homes brought on by Labour’s commitment to housebuilding may also accelerate sales growth while resisting inflation.
Overall, foreign direct investment in the UK economy has been rising since 2023 despite economic and regulatory pressures. An EY investor survey found that a record 69% of international investors intend to invest in the UK in 2024. Indeed, foreign investors seem to be increasing their holdings in the UK during its economic downturn, not divesting from it. Moreover, a CBRE report shows that, despite a 2023 fall in transactions, foreign investors still hold a positive net investment of £21 billion in the UK. Going into 2025, the UK retains its spot as the market with the highest performance expectations for international investors, with many expecting market activity to rise in the second half of the year and cement its recovery.
Maximising Your Yield with Concept Capital Group
While investing in UK property can be a highly lucrative approach to navigating today’s global real estate market, losing your profits to regulatory hurdles like the higher rate of Stamp Duty Land Tax for foreign investors can be a daunting prospect.
At Concept Capital Group, we do away with these concerns by offering international investors a streamlined, affordable and highly accessible alternative to traditional property investment. Our modular homes are sustainably built real assets with no hidden fees or charges, allowing international investors from across the world to own UK property without having to compromise on price or their bottom line.
For more information on our real asset investment opportunities, book a call with our team today.
