Surge in overseas landlords returning to the buy-to-let market
Research by Hamptons International suggests the weak pound is persuading landlords from the US and Europe to return to the rental market.
The number of properties rented out by overseas landlords has increased dramatically from 7% to 11% of the private rented housing market, a new report has revealed.
Hamptons International says the jump has been prompted by the weak pound which has persuaded investors from the US and Western Europe to return to our property investment market. Since Brexit the number of overseas landlords has, until now, been reducing.
The research also reveals that the savings created by the depreciation of the pound often offsets the extra 3% Stamp Duty landlords have had to pay since 2016.
Despite the increase, the UK has some way to go before it reaches the heady buy-to-let boom days of the pre-financial crash when 14% of all rented homes were owned by overseas landlords, who are sought after because they need a fully managed service.
The strongest increases in overseas landlords have been in the East of England, London and the South East.
The capital also has the highest proportion of non-UK residents at 18%; five years ago it was 10%.
The fastest-growing group of landlords is Americans, who now make up 14% of all landlords, although the biggest group is from countries within Western Europe.
“Sterling’s depreciation has made investment property in Great Britain more attractive to international investors,” says Aneisha Beveridge, (left) Head of Research at Hamptons International.
“The average home cost 23% or £53,065 less than in 2014 for a US dollar buyer, solely due to the currency changes.”
The Hamptons Research also shows that the average rent in the UK is only a few months away from breaking through the £1,000-a-month per property rental price barrier.