New Builds are the Key to UK Expat and Foreign National Investor Success

new build uk expat

New data from the Home Builders Federation has revealed again the cost-efficiency of a new-build home, which in turn shows how investing in a new-build can be an incredibly lucrative strategy for UK expat and foreign national investors. According to this data, 85% of new-build homes achieve an A or a B EPC rating. This is compared to only 5% of older properties. This is something that UK expat and foreign national investors need to take note of to attract the most desirable tenants and future-proof the profitability of their investment.

How Much Money do New Builds Save?

‘It’s not surprising that new-builds are more energy efficient than their older counterparts, as the energy efficiency has been a consideration throughout the duration of the construction project’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘However, the effect that this energy efficiency has on the running costs of the property is incredibly impactful. Accordingly, the average new-build energy bill is 57% less than their older counterparts – a saving of £1,685 a year. The saving amount varies between the different types of property: new-build houses are 66% more energy efficient than older properties, which amounts to savings of £2,195 a year. Meanwhile, flats are 45% more energy efficient than older flats, and have a much more modest saving of £850 per year. The more recent a property is built, the more efficient they are likely to be with the savings on the newest houses amounting to £2,575 a year compared to older properties.’

‘And new-builds do not only save money on energy. They also offer massive savings in upkeep compared with period homes. More characterful, ‘period’ properties – built before 1919 – have long been popular for buyers and renters looking for more distinctive homes. However, according to new research, these properties cost the owners an average of £700 per month in upkeep. This adds to the attraction of new-build homes, which require less upkeep and also offer the occupier massive monthly savings.’

Why are These Savings Important for UK Expat and Foreign National Investors?

‘It goes without saying that it is obviously desirable for UK expat and foreign national investors to haver lower upkeep costs for their property. Expensive upkeep can really eat into profit margins and cause forced void periods, where UK expat and foreign national investors have no rental income. With this in mind, new-builds are preferable for UK expat and foreign national investors looking to maximise their profits, as new-builds take away the cost of upkeep. As an added bonus, many new-builds also come with warranties which protect the owner in the case of any issues. This is a great way for UK expat and foreign national investors to insulate themselves from risk. Off-plan properties can provide UK expat and foreign national investors with discounted prices for new-build properties too, with expert UK expat and foreign national brokers having access to special deals from developers open to selling to these buyers.’

‘The energy efficiency of a property might not seem as important for UK expat and foreign national investors. However, to attract the best tenants, energy efficiency is becoming increasingly central. The savings offered by more energy efficient new-build properties are very attractive for tenants, especially in an economic climate with high inflation, increased energy bills, sky-rocketing cost of living and increased rental costs. But many of the most desirable tenants are favouring energy efficient properties for reasons other than cost minimisation – with ethical concerns taking more and more focus. Having a property than can avoid any ethical concerns by minimising carbon output is a massive plus for many young professionals and is likely to create a more desirable property. These are the things that really maximise rental yields for UK expat and foreign national investors – making sure the property is as desirable as possible will increase competition for the property and maximise the asking rent. This will also minimise void periods and ensure that in the event the property is empty, the owner will incur fewer costs.’

‘Further, buying a new-build now will make sure that UK expat and foreign national investors do not have an investment property that is obsolete in the future or when they come to sell it. It’s likely that legislation will have an increased focus on whether a property is ‘up to code’ on its energy efficiency. A property that performs well now is likely to remain viable into the future too, so it will mean that the property can continue to be let and that when the property is sold, it will still be mortgageable for a buyer. Future-proofing is an incredibly important part of the long-term success of an investment project. An expert UK expat or foreign national mortgage broker will help expat investors to choose the right property and area for their goals and secure the best deal on a property. We’re increasingly finding investors are looking to new-builds for their investment for precisely the reasons we’ve looked at. For those that haven’t yet decided what type of property they want, new-builds present an excellent proposition.’

Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
Phone: 0161 871 1216

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+44 161 633 5009

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