One in five (18%) new build homes in London were bought by overseas investors last year, according to research by CashbackRemortgages.co.uk.

The business found that three-fifths (61%) of non-residents abroad buying homes in London came from Hong Kong, Singapore, Malaysia and China, and three-quarters of their purchases were intended as buy-to-lets.

Second home surges despite Stamp Duty

A third of multi-million pound properties in the UK’s wealthiest suburbs have been bought by second home owners as Brexit uncertainty continues to drive foreign investment, the research revealed.

A staggering 18 homes a day (6,766 a year) with eye-watering price tags are being purchased as additional properties (37%). Half of the Treasury’s stamp duty income for properties in this price bracket was generated by second home buyers.

Income generated this year on second home owners paying the additional 3% stamp duty stood at £4,060m, an increase of 21% from last year. A quarter (23%) of all property transactions in every price bracket were by second home owners and accounted for almost half (44%) of all the tax receipts.

Suchit Sethi, founder of CashbackRemortgages.co.uk, said: “Britain’s wealthiest cities have become a goldmine for opportunistic second-homers.

“A weak pound and uncertainty over Brexit has seen a deluge of attractive price tags at the top end of the market in some of the country’s wealthiest cities and has led to an influx of foreign buyers cashing in on bargains.

“It also goes to show that the Government’s decision to increase taxes for additional dwelling purchases is basically immaterial in light of the economy’s weaker footing.