It took more than a year for Mark Hudson to find his six-bedroom home in the English countryside. Within weeks of moving in, he got a bid that topped the 1.75 million pounds ($2.8 million) the property cost.
The risky loans that helped cause the U.K.’s real-estate crash are making a comeback as cash buyers from abroad limit lending opportunities in London and banks instead venture into the weakest markets.
U.S. private-equity investors Wilbur Ross and J. Christopher Flowers, who’ve made billions of dollars turning around industries from steel mills to Japanese banks, are lining up to finance British homebuyers as the country’s biggest banks pull back.
The pound approached the strongest level in a month against the euro after an industry report showed British banks boosted mortgage approvals in June, adding to evidence the recovery is gathering pace.