Hong Kong's BN(O) emigrants are more likely to rent in the UK than buy, even as a stamp duty holiday ends and home prices plunge

Hong Kong’s BN(O) emigrants are more likely to rent in the UK than buy, even as a stamp duty holiday ends and home prices plunge

Hong Kong immigrants under the British National (Overseas) scheme are more likely to rent when they first set foot in the United Kingdom than rushing into buying residential property, brokers said.

They are also unlikely to rush into purchase commitments ahead of the end of a stamp duty holiday in October, or be persuaded by the biggest plunge in average home prices in nearly 30 years in July, agents said.

“Most Hongkongers [emigrating] to the UK are doing so on a long-term basis and the option to rent first is very much about finding the right place to lay these foundations,” said Marc von Grundherr, director of London-based Benham and Reeves. “We’re simply not seeing them delay this decision in the hope of saving a few thousand pounds months down the line, but renting first does present the opportunity to save in other ways.”

The cautious behaviour explains the 2020 survey by the London property search agent UK Holmes, which found that although 81 per cent of 600 respondents said they were applying for the BN(O) visa, this did not translate into an immediate intention to buy property. About half of the respondents said they intended to buy real estate within the next 12 months, while 27.8 per cent had plans within the next one to two years and the remaining 27 per cent said they would need more than two years to commit to buying real estate.

Hong Kong’s BN(O) emigrants are more likely to rent in the UK than buy, even as a stamp duty holiday ends and home prices plunge

Skyscrapers in the City of London beyond residential properties in London on Friday, May 21, 2021. Photo: Bloomberg

A levy will be slapped on home purchases valued at a minimum of £125,000 (US$170,800) starting next month when all stamp duty holiday perks wrap up, half of the current threshold of £250,000.

The tariff break was introduced in July 2020, exempting buyers of homes valued at less than £500,000 from paying stamp duty, effectively removing the burden for nine out of 10 buyers based on 2019 transaction volumes, according to property consultancy Knight Frank. It was an added incentive to help immigrants buy property, reinforcing the BN (O) scheme for an estimated 5.4 million of Hong Kong’s 7.5 million residents to have a path for British citizenship.

Hong Kong’s BN(O) emigrants are more likely to rent in the UK than buy, even as a stamp duty holiday ends and home prices plunge

Portobello Road in the Notting Hill district of London on Wednesday, May 12, 2021. Photo: Bloomberg.

About three in every four applicants under the BN (O) programme were given their visas in the first five months of the scheme, according to official data released in August canvassing nearly 65,000 Hongkongers who have applied.

Although average prices declined by 3.7 per cent across the UK in July from June, the most since 1992, Hongkongers’ decision to rent is also influenced by other factors such as looking for the most suitable home.

The start of the new academic year also spurred a flurry of rental transactions, said Andrew Weir, chief executive at the property agency London Central Portfolio. The number of students who applied to start full-time undergraduate courses in the UK in the 2020-21 academic year rose 8.4 per cent to 728,000 from the previous year, according to government data.

“We have seen a marked increase [in the number of Hongkongers] renting over the last two months,” said Weir. “Many of these are students and young professionals renting for the first time in London. This happens every August and September as the new academic year begins. Last year, this did not happen to the extent it had in 2021.”

The rental market for August continued to show positive signs, with Zoopla reporting price growth of 5 per cent nationally, excluding London, with the national capital registering a 3.8 per cent increase, said Terence Stephens, founder of UK Holmes.

Internet Explorer Channel Network
News Related


IIFL Finance reports 37% rise in Q2 profit at Rs 291.6 crore

Q2 earnings report IIFL Finance on Wednesday reported a 37 per cent rise in net profit at Rs 291.60 crore in the second quarter ended September. The company had posted ... Read more »

Uber partners with Hertz to offer 50,000 Tesla rentals to US ride-hail drivers

Uber Technologies Inc on Wednesday said it is launching a new partnership with rental car company Hertz to offer 50,000 Tesla Inc vehicles as a rental option to its ride-hail ... Read more »

IndusInd Bank Q2 profit jumps 72% to Rs 1,114 crore; provisions, NPAs decline

Private sector lender IndusInd Bank on October 27 reported a 72.1 percent year-on-year (YoY) growth in standalone profit at Rs 1,114 crore in the quarter ended September 2021, with a ... Read more »

Paytm's IPO likely to open on November 8 at a price band of Rs 2,080-2,150 per share

Softbank-backed mobile payments firm Paytm’s Rs 18,300 crore initial public offering will happen between November 8 and 10 at a price band of Rs 2,080-2,150 per share, according to sources privy to ... Read more »

Budget 2021 key announcements: What has been unveiled in Chancellor Rishi Sunak's speech?

Here are the key points from Chancellor Rishi Sunak’s budget speech: • The chancellor says there are “challenging” months ahead, adding that inflation in September was 3.1% and is likely ... Read more »

Spotify makes a profit thanks to podcasts and advertisements

Photo: ANP Spotify Technology made a modest profit in the past quarter. This is partly because the large investments in podcasts on the streaming service are starting to pay off. ... Read more »

'We are just getting started': Spotify sees 19% jump in paid subscriptions

The growth was driven by demand in Europe and North America which, together, make up almost 70% of premium subscribers. Read more »

Gainers & Losers: 10 stocks that moved the most on October 27

The benchmark indices erased the opening gains in the final hour and ended lower. At close, the Sensex was down 206.93 points, or 0.34%, at 61,143.33, and the Nifty was ... Read more »

Moneycontrol Pro Panorama | Why is India burning less bright for foreign investors?

Dear Reader, The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by ... Read more »

European Commission wants to soften new rules for banks

Photo: ANP The European Commission wants to soften the new international rules that banks must strengthen for a new financial crisis. European banks will soon have to maintain higher buffers, ... Read more »

Parent company Blokker and Intertoys sells budget retail chain Big Bazar

Mirage Retail Group (MRG), parent company of Blokker and Intertoys, among others, sells budget store Big Bazar to BB Retail. MRG reports this in a press release on Wednesday. The ... Read more »

Taking Stock: Sensex, Nifty end lower amid volatility; private banks, metals drag

The market ended lower due to profit-booking in the final hour of the trade on October 27, snapping two days of gains. Losses in metal and banking and financial names ... Read more »

Titan Q2 Result | Profit comes in at Rs 641 crore, revenue at Rs 7,243 crore

Representative image Titan Company Limited, one of the largest fashion accessories brands in India with strong presence in jewelry, watches and eyewear, declared its results on October 27 for the second ... Read more »

Rupee declines 7 paise to close at 75.03 against US dollar

Representative image The rupee weakened by 7 paise to end at 75.03 against the US currency on Wednesday, weighed down by a muted trend in domestic equities and strength of ... Read more »

McDonald's earnings beat as Covid restrictions ease, fueling strong international sales

A large portion of French fries, a classic Big Mac burger and a large sized coke are on display on a tray at a branch restaurant of fast food chain ... Read more »

Chicago is at risk as climate change causes wild swings in Lake Michigan water levels

The Great Lakes are often called the nation's third coast, and the past five years in the region have been the wettest on record. While the lakes don't exactly correlate ... Read more »

Air India's shareholders approve transfer of four subsidiaries to Air India Assets Holding

Air India | Representative image The shareholders of Air India Ltd on October 26 approved the transfer of its four subsidiaries to Air India Assets Holding Ltd (AIAHL), the company said in ... Read more »

GM is set to report results before the bell. Here's what Wall Street expects

The GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, March 16, 2021.Rebecca Cook | Reuters DETROIT – General Motors announces third-quarter earnings before ... Read more »

Buy Nippon India Life Asset Management: target of Rs 502: Sharekhan

Sharekhan’s research report on Nippon India Life Asset Management Q2 numbers beat estimates with PAT growing by 47% y-o-y and ~18% q-o-q to Rs. 231 crore led by a strong ... Read more »

Buy Torrent Pharmaceuticals: target of Rs 3400: Sharekhan

Sharekhan’s research report on Torrent Pharmaceuticals Torrent Pharmaceuticals Limited (Torrent) reported steady growth for Q2FY2022, though PAT missed estimates due to higher tax rate. The company derives ~60% of its ... Read more »

Buy Greaves Cotton: target of Rs 178: Sharekhan

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected ... Read more »

Buy Cipla: target of Rs 1150: Sharekhan

500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive ... Read more »

Buy SRF: target of Rs 2430: Sharekhan

Sharekhan’s research report on SRF Q2FY22 operating profit/adjusted PAT of Rs. 675 crore/ Rs. 362 crore, up 18%/11% y-o-y missed our and the street’s estimate due to weaker-than-expected revenue/margin in ... Read more »

China amends Anti-Monopoly Law for the first time amid tech crackdown, increasing penalties and regulatory control

China is amending its Anti-Monopoly Law for the first time since it came into force in 2008, beefing up antitrust penalties in an explicit push for more control over the ... Read more »

Coca-Cola earnings top estimates as consumers drink more beverages away from home

A worker restocks a display of Coca-Cola Co. soft drinks at a store in Orem, Utah, U.S., on Tuesday, Feb. 9, 2021.George Frey | Bloomberg | Getty Images Coca-Cola on ... Read more »

Moldova posts new 1.5 mln cubic meters of gas purchase tender

The cost of contracts is still unknown Read more »

Silver breaks below 100-DMA as prices fall under Rs 65,000/kg; may see further dip

Silver Silver prices edged lower for the second day on October 27 as the dollar rebounded on better than expected US economic data, a weaker trend in gold and industrial ... Read more »

Indian Overseas Bank Q2 profit jumps to Rs 376 crore

State-owned Indian Overseas Bank (IOB) on Wednesday posted a more than two-fold jump in net profit for the July-September quarter of this fiscal to Rs 376 crore compared to Rs ... Read more »

Jack Ma visits Walhalla greenhouse horticulture Netherlands: ‘Want to develop huge greenhouse area in China'

Jack Ma, the striking founder of the Chinese online store group Alibaba, was in the Netherlands last Monday to be informed about large-scale greenhouse horticulture. He visited the World Horti ... Read more »

Cricket has a new synonym — IPL

The addition of two new teams to the world’s most high-profile cricket tournament, the Indian Premier League (IPL) makes it a 10-team tournament. However, this is not something innovative, or ... Read more »

McDonald's is about to report earnings. Here's what to expect

A large portion of French fries, a classic Big Mac burger and a large sized coke are on display on a tray at a branch restaurant of fast food chain ... Read more »

Bottled water magnate Zhong Shanshan tops Hurun China Rich List with US$60.6 billion as mainland property tycoons drop out of top 10 for first time

Zhong Shanshan, the founder of bottled water giant Nongfu Spring, has topped the Hurun China Rich List, as mainland property tycoons dropped out of the top 10 altogether for the ... Read more »

Economy to grow more than 1% this year – Arkhom

Finance Minister Arkhom Termpittayapaisith The economy is expected to grow by more than 1% this year, helped by improved exports and government measures as well as a gradual recovery in ... Read more »

Norwegian state oil company Equinor increases gas deliveries to Europe

Photo: ANP Norway’s state-owned oil and gas company Equinor will increase its gas supplies to Europe to meet high demand. That said CEO Anders Opedal of Equinor, which was formerly ... Read more »

Starbucks pushing for faster expansion in India, to introduce new store designs

Photo by: Engin Akyurt/Pixabay Starbucks is expanding its business in India, and the company is working to hasten the process. The coffee chain's local partner, Tata Consumer Products, announced earlier ... Read more »

Policybazaar IPO | Profitability is a choice, not a priority, says founder Yashish Dahiya

File image “I think I could have had a very simple, alternate life as an army person”, Yashish Dahiya avers. The co-founder and CEO of PB Fintech, the parent of ... Read more »

NCLT adjourns Zee-Invesco case till November 16, investors to appeal against Bombay HC order

ZEEL | Representative image The National Company Law Tribunal (NCLT) on October 27 said that the bench has adjourned the case till November 16 for directions. Counsel appearing for OFI Global China Fund, ... Read more »

China updates rules on real-name registration online in crackdown on schemes to revive banned user accounts

China’s internet watchdog is updating regulations on how users of domestic online platforms identify themselves, making it harder for censored social media accounts to be revived, as Beijing intensifies efforts ... Read more »

From BTS-themed Samsung earbuds to Blackpink merchandise, what to buy your K-pop loving nearest and dearest this 2021 holiday season

Buying gifts this holiday season will be hard enough with shipping and manufacturing delays, but just because 2021 has been rough doesn’t mean your gift shopping should be. For all ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic