Rental growth slows to 0.2% across Great Britain in July according to Hamptons International
Latest Hamptons International Monthly Lettings Index – July 2018 reveals that the proportion of homes let by an international landlord in Great Britain halves from 13% in H1 2010 to 6% in H1 2018, however London bucks the trend.
The average cost of a new let in Great Britain rose to £964 pcm in July according to Hamptons International, the pace of rental growth continued to slow to 0.2%. average rents in London fell for the second consecutive month, down 1.6% year-on-year.
Commenting Aneisha Beveridge, Analyst at Hamptons International, said:
“The proportion of homes let by an overseas based investor has halved in the last eight years. Higher stamp duty and annual tax on enveloped dwellings (ATED) combined with a steady increase in foreign investors’ tax bills has led to a decline in foreign investment in buy-to-let. Overseas investors also saw the removal of capital gains tax exemptions in 2015.
“However over the last year, London has bucked the trend with a pickup in international landlords. Sterling’s depreciation, effectively offering international buyers a discount, combined with a softening London market, has helped offset the additional higher costs of owning a buy-to-let property in the capital for foreign investors.
“Rental growth slowed to 0.2% across Great Britain in July. Falls in London were offset by higher growth in the rest of the country. Inner London experienced the greatest fall, with rents decreasing for the third consecutive month.”
Read the Hamptons International Monthly Lettings Index – July 2018 in full click here.