The number of commercial and residential properties in England and Wales owned by overseas companies has almost doubled over the past 10 years, according to analysis undertaken by Search Acumen.
There are now 91,791 properties in England and Wales owned by overseas owners and the value of these properties has jumped from £15.9bn in 2015 to £125bn today.
According to Search Acumen’s analysis, 2017 saw one of the largest annual increases in titles registered by overseas companies, while 2018 saw the highest value of new properties registered totalling £16.2bn.
Jersey is the top country on the register with the highest volume and value of properties currently registered under overseas company ownership, holding £57bn worth of assets – equivalent to 25%. The British Virgin Islands (21%), Guernsey (13%) and the Isle of Man (11%) also feature in the top five locations.
While the rate of new properties being purchased by overseas companies added to the register has declined over the past few years, the overall value of these assets is on the up. Overall, values have risen 44% since 2022, equivalent to £38.5bn.
Andrew Lloyd, director at Search Acumen, said: “The size of property wealth currently under ownership by overseas companies is eye watering, doubling in a decade. Whilst there are some gaps and inconsistencies in the data from its source through government records, it is widely indicative of wider investor trends and system that can and does protect the world’s most wealthy.
“However, it is telling that the number of properties purchased by overseas-based companies are falling, currently at a 10-year low. This tells us two things; that either investors and the wealthy are buying assets and storing capital outside the UK, which is a troubling sign that our global appeal may be in decline, or that our property transaction system is becoming more stringent, noting increased transparency measures and anti-money laundering regulation in recent years deterring illicit purchases.
“The likely answer is a bit of both. We know that the UK’s exit from the EU had huge economic consequences, including on the property industry. New taxes and rules for overseas investment has played a critical role in the decline since 2022, seen as a less attractive place post-Bexit, whilst in turn opening up opportunities for more domestic businesses.
“We also saw in August 2022 the Register of Overseas Entities newly require overseas entities owning UK property to declare who their beneficial owners are, which included non-UK companies. This move indicated to the wider market a tighter grip on compliance by the government. Whilst reducing anonymity has to be a good thing, it may have in turn deterred some investors. This, combined with rising interest rates, higher borrowing costs, falling yields and slow capital growth, has likely made speculative investment less rewarding.”
