Utilising Hong Kong’s ambition to stimulate the UK economy

Written by Graeme Beattie

The recent decision to permit up to 3million Hong Kong citizens to migrate to the UK and obtain British citizenship in light of legislative change enforced by mainland China may give the UK property market an uplift, having been deflated due to Covid-19.

Indeed the initiative, which gained wide support in Parliament, is expected by the Foreign Office to attract around 200,000 new British citizens.  The extent of this non-EU migration has been unseen in recent times and is comparable only with the migration of Ugandan Asians who fled Idi Amin’s regime in the early 1970s, bringing renowned entrepreneurial skills and invigorating the British economy.

Unlike Ugandan citizens, Hong Kong citizens will bring a higher mean net wealth per capita to UK PLC. This will present an opportunity to professional advisors working with HNW clients with UK connection.

Weak Sterling and a strong Hong Kong Dollar makes the UK’s established and desirable property market even more attractive to Asian investors, especially considering the low interest rate environment and relative availability of borrowing facilities with specialist lenders.

Despite the world economy being in a state of recession, many Hong Kong nationals may feel more comfortable raising their families in a more secure and stable legal system, with the country’s proximity to the EU and cultural attractions being added bonuses.

This development could act as a real stimulus for the wider economy and the most agile advisors will be able to adapt quickly and offer high value-added services to their new clientele (from a safe social distance, of course).

If you’d like any more information or have any questions, please do get in touch.

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This post was written by Caitlin Roxburgh