Posts with tag: overseas landlords

Overseas-based landlords increase interest in UK property

Published On: November 12, 2019 at 10:19 am

Tags: Hamptons,overseas landlords,overseas property investors

Overseas property investors are increasing in the UK, according to new figures from Hamptons.

This latest data reveals that the proportion of homes in Great Britain let by overseas-based landlords has increased to 11% over the first 10 months of 2019. This is up from % during the corresponding period last year.

The proportion of homes let by overseas-based landlords:

Aneisha Beveridge, head of research at Hamptons International, said: “The proportion of homes let by overseas-based landlords rose for the first time in more than nine years. The East and London recorded the biggest increases.”

The depreciation of sterling is thought to be the main reason for this increase in interest from those overseas, as it is not cheaper for international buyers to acquire property IN Great Britain than it was a few years ago.

The average home in Great Britain cost £53,065 or 23% less than it did in 2014 for a US dollar buyer – solely due to a fall in the value of the pound.

Beveridge added: “Sterling’s depreciation has made investment property in Great Britain more attractive to international investors. The average home cost 23% or £53,065 less than in 2014 for a US dollar buyer, solely due to the currency changes.

“Rental growth in the South outstripped rental growth in the North. Rents in Great Britain rose 2.2% in October, but rents in the South East rose 3.9% compared with a -0.6% fall in the North. This was the first annual rental fall in the North for 17 months.”

The proportion of homes let by overseas landlords by region & currency depreciation discount:

Hamptons’ data also reveals where these overseas landlords are based:

On top of this, it shows that the average rent of a newly let property in Great Britain has increased to £999 per calendar month (PCM) in October. This is up 2.2% on the same period last year.

Rental growth is looking particularly good for the South, with average rent prices increasing by 3.9% in the South East, 3.8% in the East and 3%in the South West.

In comparison, the north of England was the only region to show a drop, with rents at -0.6%.

Average Rents of new lets (PCM):

Overseas Landlords Piling into Student Market in North West

Published On: September 25, 2017 at 8:04 am

Author: Em Morley

Categories: Landlord News

Tags: Brexit,overseas landlords,property investment,student landlords

Although recent research shows that the proportion of international investors with properties in London has hit a new low this year, following Brexit and the Chancellor’s tax hikes, overseas landlords are piling into the student property market in the North West, according to The Mistoria Group.

While the capital has experienced the largest decline, with one in ten homes let this year owned by overseas landlords – down from one in four in 2010 – research from Savills shows that the proportion of international investment flowing into the UK market has almost doubled in the past two years, with £1.2 billion coming from Singapore alone in 2016.

Around 25,000 new student accommodation units have been completed for the start of this academic year, while a further 14,000 are already under construction for next year.

The Mistoria Group, which specialises in high-yielding property investments, has seen demand for shared student accommodation soar in the North West – up by 35% in Liverpool alone over the last 12 months.

Mish Liyanage, the Managing Director of The Mistoria Group, says: “It’s no surprise student property in the North West is booming with international investors. A north-south divide has opened up in the buy-to-let market, as a result of soaring property prices in London and the South East, which has made the region unprofitable for investors.

“The tougher tax measures, political uncertainty and falling house prices in London have led international investors to look for alternative asset classes, farther afield. Many have been attracted by the high yields in the North West, which boasts the ten best buy-to-let locations in the UK, while the south has the ten worst locations.”

He explains: “The type of international investors who were originally investing in the super-prime apartment bubble are now channeling their money into student flats and shared accommodation. Student property is the fastest growing sector of the market, giving investors strong returns that are well ahead of standard buy-to-let.

“In the North West, an investor can acquire a high quality three-bed HMO [House in Multiple Occupation] in Liverpool which will house four students, from £120,000 onwards. The return on investment is very attractive too, with 13% – 8% cash rental and 5% capital growth.”

Has your property investment strategy altered to reflect the changing market?

Number of overseas landlords in UK falling

Published On: July 17, 2017 at 9:18 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,overseas landlords,UK rental market

The most recent report from Countrywide has revealed that the number of overseas-based landlords in the UK has slumped to a record low in 2017.

In all, overseas landlords own 5% of all homes let in Great Britain this year, down from 12% in London during 2010. London has experienced the most profound growth, with one in ten properties let by an overseas landlord. This was down from 26% in 2010.

Prime central London also saw falls, from 31% in 2010 to 23% in 2017.

Overseas Landlord Falls

The percentage of European-based investors has been slowly falling over time. During 2010, landlords from this continent made up 39% of all overseas landlords in the capital. Now however, they make up 28%.

Asia based landlords now account for 33% of overseas investors in London, followed by Europeans, North Americans (10%) and those from the Middle East (9%).

Outside of the capital, Europeans remain the largest group of overseas landlords, at 37%.

For all regions, the number of overseas-based investors has dropped since 2010. London still has the largest percentage, followed by the South East (5%). Outside of these regions however, fewer than 5% of properties are let by an overseas landlord.

Number of overseas landlords in UK falling

Rents

The typical overseas-based landlord made 35% more in rents last year than one living in the UK. Those from overseas earned £5.4bn during the year. More than half of the income received from overseas landlords came from rental properties in London.

Johnny Morris, Research Director at Countrywide, observed: ‘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.’[1]

‘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,’ he added. [1]

[1] http://www.propertyreporter.co.uk/landlords/overseas-landlord-number-at-record-low.html