Many Hongkongers pay three to four times more in British hotels and short leases if they don’t line up property before emigrating

Short-term leases can cost between 16.8 per cent and 76.2 per cent more than traditional flats, according to Marc von Grundherr, director of property agency Benham and Reeves

Delays in the purchase process and the search for suitable housing could add up, forcing many Hongkongers to emigrate without arranging accommodation before hand

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Pedestrians along Portobello Road in the Notting Hill district of London on Wednesday, May 12, 2021. Photo: Bloomberg

Published: 8:00am, 26 May 2021Updated: 8:51am, 26 May 2021

A growing number of Hongkongers leaving for Britain under the British National (Overseas) passports scheme are ending up in short-term housing that typically cost more than traditional flats because of the scarcity of readily available abodes, according to a leading property agency.

Short-term leases can cost between 16.8 per cent and 76.2 per cent more than traditional flats, according to Marc von Grundherr, director of property agency Benham and Reeves. Delays in the sales and purchase process and the search for suitable housing could add up, forcing many Hongkongers to leap into their emigration without arranging accommodation, or even securing jobs, which contribute to the lack of usable credit record.

“Transactions are delayed due to a bottleneck fuelled by a stamp duty holiday, [so] many Hong Kong buyers have had to rely on (short-term leases) and hotels to put a roof over their heads at an extortionate cost,” said von Grundherr. “We’re advising those coming via our Hong Kong office to opt for a rental property initially. This has now become the preferred method of relocating to the UK for 95 per cent of our clients.”

An estimated 5.4 million Hongkongers are eligible to move to Britain under the BN(O) programme, which was offered by London to the residents of its former colony following Beijing’s imposition of a sweeping security law in Hong Kong last year. As many as 35,000 Hongkongers had applied for the visa as of mid-April, merely 10 weeks after the scheme was launched, according to UK Holmes, a London property search agent.

Skyscrapers in the City of London beyond residential properties in London, on Friday, May 21, 2021. Photo: Bloomberg.

The shift to a “short-term basis” renting in prime London areas has prompted “sellers who are keen to capitalise on a recovering sales market and the stamp duty holiday (to sell and move) into short-term rental properties whilst either searching for or finalising their purchase,” according to Andrew Weir, chief executive at London Central Portfolio, a buying agency.

There is no official data about the number of Hongkongers seeking short-term accommodation, but anecdotal evidence from property agents, real estate portals and landlords suggest that short leases and hotels are becoming popular options for many newly arrived immigrants in Britain.