- Landlords based on the continent has been gradually falling over time
- London sales to overseas landlords down from a quarter in 2010 to one in ten
The proportion of overseas landlords with properties in Britain has hit a low this year as tougher tax measures, political uncertainty and falling house prices in London bite.
Research from international estate agency group Countrywide found that overseas landlords owned just 5 per cent of all homes let in the UK in 2017, down from 12 per cent in 2010.
London has seen the largest fall with one in ten homes let this year owned by an overseas landlord, down from one in four in 2010. In prime central London overseas based landlords owned nearly a third of all homes let in 2010, a figure which has fallen to 23 per cent in 2017.
The number of European based landlords has been gradually falling over time
Meanwhile the number of landlords based on the continent has been gradually falling over time – more so than any other region. In 2010 they made up 39 per cent of all overseas landlords in London, but now account for 28 per cent.
They were the biggest group of overseas investors in London until 2014, but have been overtaken by Asia-based landlords who own a third of London’s rental properties owned by those living abroad.
Europeans own 28 per cent of these, North Americans 10 per cent and Middle Eastern landlords 9 per cent.
Despite falling ownership rates, the average overseas based landlord earned 35 per cent more in rent last year than one living in the UK.
Collectively this totted up to £5.4billion in rent over the past 12 months – 11 per cent of the £50.6billion paid by private tenants in the UK.
Johnny Morris, research director at Countrywide, said: ‘A steady increase in foreign investors’ tax bills combined with more recent falling expectations of price growth in London has led to a decline in foreign investment in buy-to-let.
‘As well as having to contend with increased stamp duty and the annual tax on enveloped dwellings, overseas investors also saw the removal of capital gains tax exemptions in 2015.’