Decline in foreign investment in buy-to-let according to Countrywide
Countrywide’s latest Monthly Letting Index – June 2017 headlines ‘Proportion of overseas landlord’s halves.’
Rents rose 1.1% year-on-year across Great Britain in June to stand at £950 pcm
The letting index report shows that the proportion of overseas based landlords in Great Britain hit a record low in 2017, now owning 5% of all homes let in Great Britain, down from 12% in 2010. London has seen the biggest fall in the proportion of homes owned by overseas landlords, from 26% in 2010 to 11% in 2017.
Commenting on the findings, 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.
“Rental growth remained at 1.1% in June. Falls in London were off-set by higher growth across the rest of the country. The fall in the capital was driven by lower rents in the outer areas of London as the ripple effect from falling rents in Central London continues.”
Read Countrywide’s latest Monthly Letting Index – June 2017 in full click here.
You May Also Enjoy
Government’s last-minute Planning Bill amendments will tackle blockers and boost growth
Next budget a “pivotal moment for the property market”
28% Increase in Brits Moving to Australia
New-build transaction volumes fall by 62%
Brits could buy a haunted property without knowing
