Stamp duty changes appear to be spurring increased interest from overseas buyers, data from Legal & General’s Mortgage Club reveals. 

Figures from the club’s SmartrCriteria tool shows “visas” were the most searched term by advisers in the last week of July.

The news follows the chancellor’s announcement earlier last month of a stamp duty holiday on homes worth up to £500,000, reducing the tax bill from 5 to 3 per cent for many investors buying additional properties.

Another factor driving interest from abroad is the 2 per cent stamp duty surcharge that will apply to overseas buyers from April 2021.

L&G says that buy-to-let searches for applicants on a visa have risen by 146 per cent since the chancellor announced the surcharge back in March.

Legal & General Mortgage Club.

Throughout July, “expats not in the UK” and “foreign income” have both ranked highly as search terms.

It comes after Mortgage Strategy previously reported growing interest from Hong Kong buyers following harsh security laws in the territory and the UK government’s relocation offer to 3m Hong Kong residents.

Legal & General Mortgage Club director Kevin Roberts says: “Britain’s housing market is bucking the trend and has faced unprecedented levels of demand since reopening in May, and now figures show that a growing number of overseas buyers are also taking interest in UK property.

“Our SmartrCriteria tool is tracking some of the key industry trends in the mortgage market’s new normal and shows recent announcements from the Government have clearly gained the attention of non-UK based buyers.

“Many are now looking to take advantage of the Stamp Duty holiday while also investing in the market before the 2 per cent surcharge for overseas customers takes effect.

“Our latest figures also coincide with increased interest from Hong Kong buyers, who are now looking to the UK housing market as a ‘safe haven’ amidst political uncertainty in the territory. 

“There is an opportunity for advisers to support many of these buyers, particularly if they have little to no credit history in the UK. 

“Lending criteria is changing every day in the mortgage market at the moment, and advisers will be key in helping these borrowers and others to cut through the noise and find the best product for their particular circumstances.”