UAE expats look to UK property

People walk past estate agents' signs outside a row of houses along a street in south London.

 Expats in the UAE and Qatar are piling into the British property market in order to beat the UK's stamp duty surcharge, but many will face hurdles, experts have revealed.
The observation comes ahead of the introduction this April of a three per cent stamp duty surcharge on UK properties for buy-to-let investors and second homeowners compared with residential buyers.
Kevin White, head of distribution at deVere United Kingdom, who will be presenting a UK property and mortgage seminar in Abu Dhabi on February 9, noted: "More than 70 per cent of all enquiries come from people living and working outside Britain. The overwhelming majority of these individuals - approximately 45 per cent - currently reside in Qatar and the UAE. There has been a 60 per cent month-on-month uplift in enquiries from Qatar and the UAE. Expats from these Gulf nations are now piling into the British property market."
He added: "We attribute this rush-to-buy phenomenon to those expats who, quite sensibly, want to avoid being subjected to the extra levy. No-one wants to pay an extra three per cent in stamp duty." A series of recently published reports confirm deVere Mortgages' observations of an extremely buoyant UK property market, with demand at a three-month high. However, there are extra complications for non-UK residents.
"Whilst demand for UK property soars, expats need to be aware that there are extra hurdles that they will have to face," White cautioned. "Expats should know that they are typically deemed as high risk' by the vast majority of UK lenders. This is often the case even for those who have substantial assets and/or a high, stable salary. They are usually red-flagged due to a lower UK credit rating as they have lived outside the UK, earned a different currency and worked for a non UK-based firm. Expats also need to consider other important factors including the pitfall of wasting money on excessive rates and the ability to reclaim tax within 18 months."
- business@khaleejtimes.com