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Overseas landlords halve in eight years: Hamptons

The proportion of UK properties let by overseas-based landlords has declined significantly in recent times, from making up 14.4 per cent of stock in 2010 to 5.8 per cent in the first 11 months of 2018.

All regions of the UK have recorded a drop. However, the fall in London, at 15.5 per cent since 2010, is the steepest.

Of those in the capital, one in four – or 26 per cent – of homes in London were owned by overseas landlords in 2010, which has dropped to 10.5 per cent so far this year.

Despite this, London still has the highest proportion of internationally-based landlords in the UK.

Outside the capital, Yorkshire and Humber has the largest quantity, at 6.7 per cent, with the region only seeing a 4 per cent decline since 2010.

Western Europeans make up the biggest group of overseas-based landlords at 34 per cent, followed by Asian landlords at 20 per cent and North Americans, at 13 per cent.

However, since 2010 the proportion of Western European based landlords has fallen by 2.1 per cent, countered by 2.1 per cent growth in Asian landlords.

Hamptons International head of research Aneisha Beveridge says: “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 per cent and only passing 2.0 per cent on two occasions.

“Affordability is not just an issue for those looking to buy a home, but impacts tenants paying rent too. These affordability barriers will continue to keep a cap on rental growth in the future.”

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