Join us for FREE and access exclusive investments and property investment resources
Join IPIN here
Access exclusive opportunities that are only available to IPIN Members
Find out more
We never share your data with any third parties.
*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.
Buy to Let
Foreign Property Investors
A change in the attitude of foreign investors in the UK property market has meant that there are now far more overseas landlords than ever before, according to a new report published by UHY Hacker Young. It said that fewer are now looking for trophy homes in London and the south-east, now preferring to purchase rental homes in regional areas as a way to find decent returns, boosting supply in the private rented sector.According to the report, the volume of foreign landlords saw a six per cent increase over the course of 2013 to hit 2.04 million, up from the 1.93 million the year before. In addition to this, it marked a 39 per cent rise from the 1.46 million overseas landlords in the UK since 2006/2007."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 governments' interference in the assets of private individuals," said Mark Giddens, head of Private Client Services in the firm's London office. He added that the moving away from purchasing trophy homes and towards buy-to-let properties was facilitating a sharp rise in the number of newly built homes in the private rental sector to help cope with demand.And it also has an impact on the GDP of the nation as well, the study discovered. It said that the tax brought in by HM Revenue and Customs (HMRC) in the past year has risen by almost two-thirds. In 2006/2007, this amounted to some GBP 230 million, but it has risen by 64 per cent to hit GBP 379 million as of the end of 2013.The country has long been a fantastic place for overseas investors to buy, and Mr Giddens said this is driven by the strength of the market, something the government is looking to capitalise on. "While HMRC has already increased its tax take on foreign-owned properties in recent years, the government's Autumn Statement is looking to ensure that the Exchequer gets an even greater share of the substantial revenue generated by London's high end property market," he explained.
Who is investing into the UK property market from abroad? Find out here
Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here
Visit Our Investment Terms Glossary
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.