The proportion of homes let by an overseas based landlord has more than halved in the last eight years according to a report by Countrywide’s upmarket lettings brand, Hamptons International.
In 2010 when its records began, overseas based landlords let 14.4 per cent of homes in Great Britain, but this has fallen to just 5.8 per cent in the first 11 months of 2018 - the lowest level on record.
London has seen the biggest drop off.
One in four homes let in London were owned by an overseas based landlord in 2010, but this has now fallen to one in 10. The proportion of homes let by an overseas landlord in the capital has fallen 4.7 per cent in the last two years alone.
Yet perhaps unsurprisingly, London still has the highest proportion of homes let by an international landlord than in any other region.
Elsewhere in the UK, the proportion of overseas based landlords has fallen 10 per cent in the South East since 2010, followed by the North East and East Midlands, both down six per cent.
West Europeans make up the biggest group of overseas based landlords currently letting (34 per cent) followed by Asian (20 per cent) and North American (13 per cent).
Aneisha Beveridge, Hamptons’ head of research, says: “The proportion of homes let by an overseas based landlord has more than halved since 2010.
“Sterling’s depreciation since 2016 undoubtedly makes it cheaper for international buyers to purchase property in Great Britain. However, the conversion of pounds back into local currency means additional costs which cut into an overseas landlords’ monthly income.
“This combined with a harsher tax regime for overseas investors is dissuading some international investors from entering the rental market.”