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Overseas-Based Landlords Leaving the British Rental Sector
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Overseas-based landlords are leaving the British private rental sector, according to the latest index from Hamptons International.
The estate agent found that the proportion of let properties in the UK owned by overseas-based landlords is now at its lowest level in almost a decade.
The number of homes let by international landlords has dropped sharply from 14.4% of all properties in the first half of 2010 to 5.8% in the first 11 months of 2018, Hamptons found.
Every region in Great Britain recorded a fall in overseas-based landlords, but London has seen the most significant decline, with the proportion of homes let by international landlords dropping by 15.5% since 2010, to reach one in ten (10.5%) homes. This is down from just over a quarter (26%) of all properties in 2010.
However, the capital still has the highest proportion of homes let by overseas-based landlords than any other region.
Elsewhere, the proportion of international landlords has fallen by 10% in the South East over the same period, and by 6% in both the North East and East Midlands.
Outside of the capital, Yorkshire and the Humber has the highest proportion of homes let by overseas-based landlords (6.7%), and this region has only seen a 4% decrease in international investors since 2010.
Western Europeans account for the largest group of overseas-based landlords (34%), followed by Asians (20%) and North Americans (13%). However, since 2010, the proportion of Western European-based landlords has fallen by 2.1%, compensated by a pick-up in Asian landlords (2.1%). The number of Middle East-based landlords has also risen by 1.4% over the same period, now accounting for 11% of all international investors.
Hamptons International also found in its latest index that the average cost of a new let in Great Britain increased by 1.1% in the year to November, to hit £968 per month.
Every region of the country recorded growth in average rent prices, but the East of England saw the strongest (2.9%), followed by Scotland(2.5%) and Wales (1.9%).
Meanwhile, Greater London saw the slowest rent price growth of the year, at just 0.1%.
Are you an international landlord? If so, we’d love to hear your thoughts on the number of overseas-based landlords declining.
