First-time buyers from HK in need of help in Britain

More clients from city looking to own and occupy properties in UK than ever before, agencies say

Property agencies in Britain are providing more “hand-holding” for an influx of first-time buyers from Hong Kong, many of whom arrive without knowledge of the buying process and – in some cases – with inflated expectations about what they can afford.

As the British National (Overseas) visa scheme brings more Hong Kong migrants to the country, agencies focused on clients from Hong Kong have observed a shift in their customer pool, away from seasoned investors and towards first-time buyers.

A regular advertising campaign run by Savills drew more interest in the past year from those without previous buying experience, despite overall sales having plateaued, according to Mark Elliott, Hong Kong-based head of international residential sales for the agency.

“The respondents [to the campaign] were very different to what they have been over the past five years,” he said. “These are people who are new to London and haven’t been looking at London before.” They had a weaker understanding of the local property market, he added.

“We’ve had an increase in inquiries specifically because buyers don’t know at all what they’re looking for,” he said. “They come with a budget and an idea in mind – because a friend or a family has told them [buying properties in Britain] is a good idea.”

The surge in inquiries did not, however, mean an equally sharp increase in properties bought, Elliott added.

Agents are providing packaged services to the new wave of clients, including advice on taxation and mortgage applications.

“More hand-holding is needed during the sales process,” said Timothy Wu, managing director of property seller Fulcrum Global. He said it was common for new buyers to be unaware of the process of buying properties in Britain, where the market was less efficient and less standardised than in Hong Kong.

“Many were making purchases at property events in Hong Kong, without having the chance to visit [the properties] themselves,” Wu said, adding that more people were choosing to rent and adjust to the new environment before buying as demand stabilised.

As of last year, 104,000 Hongkongers had applied to relocate to Britain under the BN(O) programme, with 93 per cent of them winning an approval, according to government data. As

The respondents were very different to what they have been over the past five years

MARK ELLIOTT, HEAD, INTERNATIONAL RESIDENTIAL SALES AT SAVILLS

many as 322,400 immigrants from Hong Kong are likely to buy a home in Britain up to 2026, according to estimates by the British government.

Before 2019, Fulcrum’s clients were almost entirely investors, but now 40 per cent are owner-occupiers, reflecting the growth of migrants, some of whom arrive with unrealistic expectations.

“There have been situations where potential buyers had expected HK$1 million to be enough to enter the British property market, especially in regions other than London, but a flat in Manchester could easily cost HK$3 million to HK$4 million,” Wu said.