The proportion of overseas-based landlords in Great Britain hit a record low in 2017, driven by low expectations of price growth and tax changes.
According to Countrywide, overseas landlords owned 5% of all homes let in the UK in 2017, down from 12% in 2010.
London has seen the largest fall with one in 10(11%) homes let this year owned by an overseas landlord, down from one in four (26%) in 2010.
In prime central London overseas based landlords owned nearly a third of all homes (31%) let in 2010, a figure which has fallen to 23% in 2017.
Johnny Morris, research director at Countrywide, said: “The growth of the private rented sector since 2010 has not been driven by overseas investors. 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 (ATED), overseas investors also saw the removal of capital gains tax exemptions in 2015.”
The number of European-based landlords has been gradually falling over time, more so than any other nationality. In 2010 they made up 39% of all overseas landlords in London, but now account for 28%. They were the biggest group of overseas investors in London until 2014.
Asia-based landlords are now the biggest group of all overseas based landlords in the capital (33%), followed by Europeans (28%), North Americans (10%) and Middle Eastern (9%). Outside of London, Europeans (37%) remain the biggest group of overseas landlords.
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