The proportion of property in the UK owned by overseas investors has fallen from 14.4% in 2010 to 5.8% now, according to research from Hamptons International.
Hamptons says that every region of the UK has recorded a fall in overseas investor ownership but London has seen the biggest. Here the proportion of homes let by an overseas based landlord has fallen 15.5% since 2010.
The research says that one in four (26%) of homes let in London were owned by an overseas based landlord in 2010 but this has fallen to one in ten (10.5%) now – with a fall of 4.7% in the last two years alone. However, London still has the highest proportion of homes let by internationally based landlords than any other region.
Aneisha Beveridge, Head of Research at Hamptons International, says: “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.”
Hamptons’ research offer two interesting snapshots of the London market: On the one hand it illustrates just how much property was bought by overseas investors in the ‘good’ years. On the other it illustrates just how much London rental property still is overseas owned.