Buyers from the UAE and Qatar are piling into the British property market in order to beat the UK’s stamp duty surcharge – but many will face other hurdles, reveals finance firm deVere.

The observation comes ahead of the introduction this April of a 3% stamp duty surcharge on UK properties for buy-to-let investors and second homeowners compared with residential buyers.

Kevin White, head of distribution at deVere UK, part of deVere Group, affirms: “More than 70% of all enquiries at deVere Mortgages come from foreign nationals or Britons living and working abroad. The overwhelming majority of these individuals - approximately 45% – are British expats currently residing in Qatar or the UAE or they're nationals from those two countries.

“There has been a 60% month-on-month uplift in enquiries from Qatar and the UAE. We attribute this rush-to-buy phenomenon to those who, quite sensibly, want to avoid being subjected to the extra levy.  No-one wants to pay an extra 3% in stamp duty.”

However, there are extra complications for non-UK residents. White continues: “British expats and foreign buyers should know that they are typically deemed as ‘high risk’ by the vast majority of UK lenders. They are usually ‘red-flagged’ due to a lower UK credit rating as they have lived outside the UK, earned a different currency and worked for a non UK-based firm. This is often the case even for those who have substantial assets and/or a high, stable salary.”