The UK is now ranked 25th of 29 EU countries for buy-to-let investors.
Changes to mortgage tax relief and the stamp duty levy have slashed yields to an average of 4 per cent. It has sent the UK spiralling down the WorldFirst European Buy-to-Let League Table. The UK has plunged ten places as average rental yields have dropped from 4.9 per cent year ago.
Irelands ranks first in the table for the second year, with average rental yields of more than 7 per cent. Yields in the country have risen from 6.54 per cent a year ago.
Malta, Portugal, the Netherlands and Slovakia make up the rest of the top five. Each of the countries offers buy-to-let yields of more than 5 per cent.
Just four countries offer worse rental yields on buy-to-let properties than Britain.
Sweden comes in last place with average yields of 3 per cent. France, Croatia and Sweden all also have average yields below 4 per cent.
WorldFirst economist Edward Hardy says: “While the UK remains in a purgatory-like state between EU membership and Brexit, long-term investment decisions have become increasingly difficult to make. Falling returns for property investors could mark the beginning of the end for one of the UK’s most successful investment avenues of the past 25 years.”