Lettings agents could be missing out on vital income by restricting themselves to UK landlords, PayProp warns.

Analysis by the proptech firm shows that since June, 17.1% of overseas landlord payments from the platform have been sent to Singapore, with 16.2% remitted to Switzerland and 15% to Hong Kong in China over the past three months.

With millions of pounds of rent from UK tenants remitted overseas and many landlords exiting the UK, PayProp says international markets represent a “significant opportunity” for agents.

Neil Cobbold, commercial director for PayProp, said: “Overseas landlords represent an important segment of the UK rental market.

“For overseas landlords, engaging a letting agent’s fully managed service is not just a convenience but an important insurance policy.

“Having a team of UK-based property experts to help them navigate international payments, tax issues, right to rent checks, anti-money laundering laws, EPC certificates, local licensing, and other regulations the landlord may not be familiar with is essential. That key relationship helps ensure compliance with UK law, protects their investment, and helps avoid costly legal pitfalls.”

The current tax regime for overseas landlords could lead to them paying less tax on rental income than an equivalent UK landlord, Cobbold said, adding: “it is time for the Government to consider equalising these rates.

“This would help encourage domestic investment to complement the interest from overseas.

“As the UK property market will continue to attract international interest, it’s clear that both letting agents and policymakers need to adapt to evolving market trends. For letting agents, there is a significant opportunity to tap into the demand from overseas, providing tailored services that not only meet the needs of international landlords and aid compliance, but also boost their own business growth.”