The proportion of foreign landlords owning property in the UK has fallen to a new low according to Countrywide. The fall is most evident in London where the proportion of overseas landlords has fallen from 26% to 11%. Tax changes appear to have discouraged some of them, whilst others have bought properties in cheaper areas.
The biggest fall in London has been from European investors, down from 39% in 2010 to 28% now. Asians (including Hong Kong) are now the largest group of London overseas buyers.
A director at Countrywide says “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, overseas investors also saw the removal of capital gains tax exemptions in 2015.”