Hong Kong residents are buying more houses and apartments to lease out for income in Britain, property agents say, a trend that coincides with what many expect to be a wave of emigration after China passed a national security law last year. What we have seen is a tremendous increase of interest from buyers from Hong Kong for Social Housing. The reason for social housing is the complete freedom from managing tenants and hoping to be paid by working tenants. With Social Housing, the landlord is basically paid by the Home office for vunerable people. There are no voids, no management and payments come in like clock work.
Hong Kongers became the fifth largest foreign investors in London as of last August and have been driving up prices in some popular districts outside the UK capital. Areas of Manchester prices have gone vertical. This is why we are investing in the NE of England.
Another reason that Hong Kong investors are buying is that a steady rental income is useful in applying for the citizenship, as the BNO holders need to prove they can provide financial support for themselves for at least six months. With our properties for example, one 6 bed social HMO generates close to 17,000 net in yearly rents.
There are estimates that over 300,000 Hong Kong residents could emigrate over the next five years, and Bank of America expects Hong Kong residents moving to Britain could trigger capital outflows of $36 billion in 2021.
We have selling recently a great many of properties to investors from Hong Kong. These investors got burned with city center flats and non paying tenants, let along terrible estate agents. Social Housing is the perfect solution for hands off investors.