Research by lettings and estate agent, Benham and Reeves, has shown that the announcement of the BNO visa offer in July of last year has seen transactions from Hong Kong homebuyers climb by 144% in the capital.
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The BNO Visa Offer
Benham and Reeves analysed London property market activity since July of last year, when Boris Johnson announced that up to three million Hong Kong residents are to be offered the chance to settle in the UK.
Since this announcement, there have been an estimated 51,228 residential properties sold across London. This is a decline of -35% when compared to the 51,228 homes sold between July 2019 to April 2020. Across prime central London alone, transactions are estimated to have fallen by -45% during the same time period.
However, while the London market has stuttered, the research by Benham and Reeves has found that the BNO visa offer has seen the number of Hong Kong homebuyers transacting across the capital climb.
Hong Kong Homebuyers Account For 4% Of London Market Activity
Since July 2020, Hong Kong nationals have accounted for an estimated 4% of London market activity, up from just 1% in the same period the previous year.
As a result, Benham and Reeves estimate that Hong Kong buyers have transacted on some 270 homes in the prime London market since July of last year, and 1,932 across the capital as a whole.
This means that when looking at Hong Kong buyer interest alone, the prime London market has seen a 106% increase as a result of the BNO visa offer, with a 144% uplift across the entire London property market.
Easing Of Travel Restrictions Will Increase Transcations
Director of Benham and Reeves, Marc von Grundherr, commented:
“The UK has always been a popular destination of choice for Hong Kong investment into bricks and mortar. This has certainly been bolstered by the offer of the BNO visa and for the first time in some thirty years, our Hong Kong office saw more interest from those looking to buy versus those looking to invest during the first quarter of the year.
Many are doing so with an eye on the future, laying the initial foundations required for life in the UK. Some of this activity is being seen in the very high-end London market, but in fact, much of the demand coming from Hong Kong is focussed around more average market price thresholds.
We expect Hong Kongers to continue to grow in prominence where the international make up of the London property market is concerned, with many more transacting in the coming months as we see an easing of travel restrictions."
Table shows all market activity in London since the BNO offer in July 2020 and how it compares to the same period in the previous year
| Data Point | July 2019 to April 2020 | July 2020 to April 2021 (Since BNO Offer) | Change | Change % |
| Prime central London transactions | 13,094 | 7,153 | -5,941 | -45% |
| All London transactions | 79,291 | 51,228 | -28,063 | -35% |
Source: Land Registry Price Paid Data
Table shows the percentage of market activity attributed to Hong Kong buyers since the BNO offer in July 2020 and how it compares to the same period in the previous year
| Data Point | July 2019 to April 2020 | July 2020 to April 2021 (Since BNO Offer) | Change | Change % |
| Est % of market activity attributed to HK buyers | 1% | 4% | N/A | 3%% |
| Prime central London transactions | 131 | 270 | 139 | 106% |
| All London transactions | 793 | 1,932 | 1,139 | 144% |
Source: Benham and Reeves - Land Registry Price Paid Data
About Benham and Reeves
- Benham and Reeves is one of London’s largest independent letting and sales agents.
- Benham and Reeves is a family-run agency, established in 1958 in Hampstead, London.
- Benham and Reeves has 17 branches in prime residential London locations and five international offices in China, India, Hong Kong, Malaysia and Singapore.
- The company specialises in a tailored, end to end service for its clients in London and worldwide, from the sale or letting of a property, to property management, tax accounting, snagging, refurbishment and furnishing solutions.
- Anita has 35 years of experience within the property sector, helping to build Benham and Reeves from a single branch in Hampstead to one of the most established independent estate agents in London.
- Anita has driven the company’s vision to offer a complete range of property investment-related services from purchase to handover, furnishing and refurbishment, lettings and property management.
- Anita also helped spearhead the company’s overseas expansion in China, Hong Kong, India, Malaysia and Singapore.
- Marc von Grundherr is the Director at Benham and Reeves.
- Marc joined the business in 1995 and has extensive knowledge of the London and UK property market.
