Increasing numbers of overseas landlords are now investing in UK rental property.
So much so that foreign landlord numbers now exceed two million, according to chartered accountants UHY Hacker Young.
The number of overseas landlords renting out property in the UK jumped by 6% in the last 12 months to 2.04million from 1.93million in the previous 12 months. In the last five years the number of foreign landlords has risen by 39%, up from 1.46million in 2006-07.
Despite this, UHY Hacker Young said its analysis pointed out that the consistent growth in the number of foreign landlords investing in UK property might end after the Government’s recently announced plans to charge Capital Gains Tax on the sale of properties owned by foreign investors from April 2015.
Mark Giddens, Head of Private Client Services, said: “The UK economy is one of the world’s most liquid, and UK property is seen globally as a safe haven from the effects of a financial crash or from national government's interference in the assets of private individuals. That has driven fierce demand for prime property in London and the South East in particular.
“But foreign investment in UK property is not just about the purchase of trophy homes. Increasingly overseas investors are targeting buy-to-let properties, and in particular their investment in new build properties is funding a much needed boost to the supply of quality homes in the rental market.”