Overseas landlords flee the UK housing market
The proportion of overseas landlords in Britain has fallen to its lowest level on record, new data has revealed.
The number of landlords from overseas letting rental properties in Britain has halved in the past eight years, down to 5.8% in the first 11 months of 2018 from 14.4% in 2010, research from Hamptons International has revealed.
London has seen a particularly sharp fall; eight years ago, one in four (26%) homes let in the capital were owned by an overseas-based landlord, but now it stands at one in 10 (10.5%) homes, according to the figures which are based on data from letting agent Countrywide Group.
Despite the big drop-off, the capital still has the highest proportion of homes let by overseas-based landlords in Britain.
Experts said the falling pound trigger by Brexit and tighter tax controls meant the UK was becoming less of an attractive option for overseas-buyers.
Aneisha Beveridge, head of research at Hamptons International, said: “The proportion of homes let by an overseas-based landlord has more than halved since 2010.
“Sterling’s depreciation since 2016 undoubtedly makes it cheaper for international buyers to purchase property in Great Britain.
“However, the conversion of pounds back into local currency means additional costs which cut into an overseas landlords’ monthly income.
“This, combined with a harsher tax regime for overseas investors, is dissuading some international investors from entering the rental market.”
Here are the proportions of landlords based overseas by region, according to Hamptons International:
- London, 10.5%
- Yorkshire and the Humber, 6.7%
- South East, 6.1%
- Scotland, 6.1%
- South West, 5.6%
- East, 5.6%
- North West, 5.4%
- North East, 5.3%
- West Midlands, 4.4%
- East Midlands, 3.5%
- Wales, 3.3%
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