When people talk about overseas buyers ‘snapping up’ UK property, assumptions about their supposed negative impact on the housing market abound.
While it is easy to understand why some make this assumption, I believe this is a little simplistic. In reality, overseas buyers perform a crucial role in the property development cycle. And it is unfair to accuse overseas investors of simply hoovering up stock and driving up demand.
In fact, many new developments — which provide much-needed housing stock — would struggle to get off the ground without the support of overseas investors because financing is often only secured once the first few units are sold off-plan.