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Sutton, south London, has proved a particularly popular destination for these buyers – the main attractions being a string of good quality schools in the area, including Sutton Grammar and Nonsuch High School for Girls, as well as relatively affordable house prices and close proximity to London.
The UK’s universities are also a big draw. Sam Lee, director at Hong Kong brokerage Capricorn Financial, said many parents of international students in the UK prefer to purchase property to save their children several years’ of rent payments.
He added: “It can result in a good long-term investment, both in terms of rental yield and capital appreciation.
“Part of the issue is that property in Hong Kong can be considerably more expensive when compared to the UK, plus stamp duty is generally higher. There are also some concerns over the future of Hong Kong property values.”
While expats and buyers with foreign passports buying in the UK do have to pay a 2pc stamp duty surcharge, this pales in comparison to the 15pc stamp duty surcharge on second homes in Hong Kong.
Jonathan Gordon, a sales director at property investment firm IP Global, lived in Hong Kong for 20 years. He arrived back in 1997, a month before Britain’s handover of Hong Kong to the People’s Republic of China.
He said: “Steadily over the past five years, those living in Hong Kong have grown nervous about the political situation.
“In China, there are capital controls where you’re only allowed to invest $50,000 each year abroad. This hasn’t happened yet in Hong Kong, but there are undercurrents of uncertainty over whether it could.
“Hong Kong is also very expensive, and UK property is perceivably much cheaper. This has been helped by the Hong Kong dollar, which has grown stronger as the pound has grown weaker.”
Across England and Wales, Hong Kong investors own an estimated £10.8bn in property – the most valuable bricks and mortar portfolio of all foreign nationals – according to Land Registry figures obtained by estate agent Benham and Reeves earlier this year.
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