Despite a record increase in the number of properties for sale and stabilization of mortgage rates, the British housing market showed a pause in price growth in February. However, experts warn that what looks like a favorable moment for local residents may turn into a financial trap for foreign investors due to high tax barriers.
According to the Rightmove platform, the average asking price for housing in February decreased by only 12 pounds, stopping at around 368,019 pounds (about 423,500 euros). This stagnation followed the most active January since 2020, which analysts attribute to a surge in seller confidence after a period of political instability.
The key trend in February was a record supply: the number of homes for sale reached an 11-year high for this time of year. This creates unprecedented conditions for choice and bargaining, shifting the balance of the market towards buyers.
For investors from abroad, who traditionally view the UK as a reliable asset with clear rules, the current situation is fraught with hidden risks. The apparent price stability is offset by high transaction costs, which are significantly higher for non-residents.
The main obstacle remains the stamp duty, the tax paid when buying real estate. Foreign buyers are required to pay it at an increased rate with an additional surcharge for non-resident status. Those who already own a home abroad also fall into the category of second-home buyers, which automatically increases the tax burden.Source: Euronews
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