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Summary
- Hong Kong citizens have been buying London homes after the UK government announced the BNO visa scheme.
- Since the announcement of the visa, over 50,000 homes got sold across London.
- Hong Kong nationals during the period of July 2020 and April 2021, bought 1,932 London homes
Housing transactions by Hong Kong buyers have jumped by 144 per cent in London since July 2020, as per the latest data from Benham & Reeves, UK’s prominent letting agent. The main reason for the trend is the new Hong Kong British National Overseas (BNO) visa scheme announced by the UK government in last July that allowed nearly 3 million residents of the former British colony in Hong Kong.
Benham & Reeves stated that the UK had always been a popular location for homebuyers from Hong Kong. The letting agent estimated that since the announcement of the visa, over 50,000 homes got sold across the British capital city. The data also revealed that the nationals of the former British colony account for 4 per cent of the UK capital’s overall property market activity since July last year.
The BNO visa permits eligible individuals and their families to stay in the UK for up to a period of 5 years. While they can study or work in Britain during this period, they do not get access to public funds under the scheme. As per the letting agents’ report, Hong Kong nationals during the period of July 2020 and April 2021 bought 1,932 London homes, almost two and half times (793) in the same period last year.
Copyright © 2021 Kalkine Media Pty Ltd.
A Must Read: How Housing Stocks Reacted to Halifax Report of Fall in Prices
Let us now take a look at the recent performance of the prominent housing stocks at the London Stock Exchange.
Barratt Developments PLC (LON: BDEV)
The group issued its trading statement for the period from 1 January to 2 May 2021. Construction activity of the group summed up to 321 equivalent homes built per average week during the reported period. Barratt delivered a total of 4,481 home completions for the said period. The home maker expects to raise its wholly-owned completions to between 16,000 and 16,250 homes in 2021.
The company’s share price was at GBX 777.80 at 8.10 AM on Thursday, up 1.59 per cent from its previous day’s close. The stock’s market capitalisation was recorded at £7.80 billion.
Interesting Read: Housing Stocks in Focus as The UK House Prices Rise Sharply in April
Persimmon Plc (LON: PSN)
The group recently issued its trading statement for the period from 1 January to 22 April 2021, reporting that the group’s build rates continued to remain at their pre-Covid levels. The home builder brought 6,000 plots across 29 locations in the business during the reported period. The group's forward sales position was 23 per cent ahead of the previous year. The firm’s cash position remained strong, and it had £940 million cash on 23 April 2021.
The company’s stock hovered at GBX 3,141.00 at 8.22 AM on 6 May, up 0.32 per cent from its previous day’s close. The stock’s market capitalisation was recorded at £9.99 billion.
Read More At: Persimmon plc (LON:PSN) releases robust performance with strong housing demand
