A recent report suggests that the number of properties rented out by overseas landlords has increased substantially from 7% to 11% of the private rented housing market. Prior to the financial crash the level was 14%.
The report reasons that the weak pound has made the UK more attractive to investors from Western Europe and the USA, since until recently the number of overseas landlords has been reducing.
Regionally, the East of England, London and the South East have seen the greatest increases. London has the greatest proportion of non-UK residents at 18%, which has risen by 8% over the last 5 years.
The largest group of landlords are from Western Europe, landlords from the USA are the fastest growing group with a 14% share of the market. It is estimated that the average property costs 23% less than in 2014 for US landlords, as a direct result of the exchange rate changes.
Samantha Powell, MARLA – Prsim National Portfolio Landlord Manager, commented that
“We have increasingly noticed that oversees landlords are discussing UK wide BTR opportunities. This supports our view that in the medium to long term the UK rental market is both secure and profitable.”