The Global Wealth Report, a reference for analysing trends in wealth, published annually by the independent international agency Knight Frank, shows that wealth worldwide will grow again by +4.2%, after the decline of 2022. The luxury real estate market will also grow by +3.6% in 2024.
Family offices’ real estate investments
A survey conducted between November and December last year among 150 family offices worldwide (companies that administer assets with an average of USD 560 million) showed that 40% of them are investing in real estate. The most popular asset types are:
- Offices (20%)
- Luxury residential properties (17%)
- Industrial complexes (14%)
- Hotels (12%)
Hong Kong leads among foreign investors in the UK
Who invests the most in this particular sector? Hong Kong citizens dominate the ranking of foreign buyers in the UK, with 13.7% of properties out of a total of 189,796 (as of January 2025). They are followed by investors from Singapore, the US, the UAE and China.
UK property market is recovering
The UK property market is recovering, partly due to the reduction in mortgage rates by banks as a result of the Bank of England’s interest rate cut last August.
Another key element is British Prime Minister Keir Starmer’s plan to build 1.5 million houses over the next five years, or 300,000 houses per year. However, the goal is proving to be ambitious. The Minister for Construction, Matthew Pennycook, emphasised that lower results would be ‘an inadequate response to England’s intense housing crisis’ (official source).
New tax measures in UK
The recent Budget Bill, presented by Chancellor of the Exchequer Rachel Reeves, confirmed the intention to tax annuities more than earned income. Income tax (Irpef UK) remains unchanged.
Some significant allocations include:
- £1.4 billion for the reconstruction of inadequate school buildings.
- £300 million per year to address structural problems, such as reinforced autoclaved aerated concrete at risk of collapse.
- Inheritance tax, with some exemptions for farmland worth over £1 million, will continue to hit the highest estates.
UK House Prices Trends
According to the latest data from the Halifax House Price Index (February 2025), house prices in the UK fell by 0.1 per cent compared to +0.6 per cent in January. The average property price is £298,602, slightly lower than the previous month’s £298,815. Annual growth remains stable at +2.9%, against expectations of +3.1%.
How to translate this information into investment opportunities?
In such a dynamic environment, Welcome Home UK is the ideal partner for investors and buyers, thanks to its expertise and experience in managing supply and demand.
Its services include:
- Long and short term rentals
- Tenant search
- Property brokerage
- Maintenance and renovation support
Find out more on the official website: Welcome Home UK.
