Overseas Landlords In Rush To Quit Buy To Let

579

Expat and foreign landlords are leaving the UK buy to let market in huge numbers, according to new data.

In 2010, landlords based overseas owned 15.5% of the UK’s private rented homes.

But this number has plunged by more than half to a record low of just 5.8% in 2018, says data from top-end estate agency Hamptons International.

The rush to quit is nationwide, with every region reporting a downturn in foreign buy to let ownership.

The impact is biggest in London.

Booking.com

In 2010, one in four buy to let homes in the capital were owned by overseas landlords. This number has fallen to one in 10 in 2018.

Despite the drop, says the Hamptons International study, London remains the UK region with the highest number of private rented properties with overseas owners.

Tax and Sterling woes impact profits

Most of the overseas-based landlords come from Western Europe (34%), followed by Asia (20%) and North America (13%) and the Middle East (11%).

“The proportion of homes let by an overseas based landlord has more than halved since 2010,” said Aneisha Bishop, the firm’s head of research.

“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.

“Throughout this year rental growth has been sluggish averaging 1.5% and only passing 2.0% on two occasions.  Affordability is not just an issue for those looking to buy a home, but impacts tenants paying rent too.  And these affordability barriers will continue to keep a cap on rental growth in the future.”

Overseas landlords in the UK by region

RegionProportion of overseas landlords (2018)Change since 2010Change since 2016
London10.50%-15%-5%
Yorkshire and the Humber6.70%-4%0%
South East6.10%-10%-3%
Scotland6.10%-5%-2%
South West5.60%-5%-1%
East5.60%-3%-2%
North West5.40%-3%-1%
North East5.30%-6%-2%
West Midlands4.40%-2%-2%
East Midlands3.50%-6%-1%
Wales3.30%-3%-3%

Source: Hamptons International

Download the Free Pension Transfer Guide

Expat Pension Transfers Guide

iExpats.com expert writers have created a simple guide to Expat Pension Transfers just for you.

Find out how you could save tax, increase growth and investment opportunities with this simple, no-nonsense guide that will introduce QROPS, SIPPs and QNUPS options and talk through the pros and cons. Download the free guide by following the link below

Leave a Reply