Proportion of overseas landlords halves, but Hampstead may buck trend

PUBLISHED: 11:09 18 July 2017 | UPDATED: 11:09 18 July 2017

However in Hampstead the weakening pound following the referendum result has actually encouraged some overseas investors

However in Hampstead the weakening pound following the referendum result has actually encouraged some overseas investors


Stamp duty and uncertainty hits overseas investors the buy-to-let market, but in American and Russian interest in Hampstead property has held

The proportion of overseas landlords in London has more than halved, according to data released yesterday by Countrywide.

In 2010 26 per cent of landlords in London were overseas investors, dropping to just 11 per cent in 2017.

In areas of prime central London, such as Marylebone and St John’s Wood, overseas landlords used to make up a third of a rental property owners.

The number dropped by a quarter, from 31 per cent in 2010 to 23 per cent proportionally in 2017.

London still currently has the highest proportion of overseas landlords.

Johnny Morris, Research Director at Countrywide, said:

“The growth of the private rented sector since 2010 has not been driven by overseas investors. A steady increase in foreign investors’ tax bills combined with more recent falling expectations of price growth in London has led to a decline in foreign investment in buy-to-let.”

Recent tax changes have made the buy-to-let industry far less lucrative for investors, both domestic and international, but a overseas investors have been hit harder.

“As well as having to contend with increased stamp duty and the annual tax on enveloped dwellings (ATED), overseas investors also saw the removal of capital gains tax exemptions in 2015,” said Mr Morris.

James Griver, a negotiator for TK International, has noticed a significant drop in the number of buy-to-let transactions across the board.

“We’ve just agreed an offer on a buy-to-let property, but it’s almost an anomaly at the moment because they’re so few and far between,” he said.

“The truth is the three per cent stamp duty surcharge has had a very, very big impact on our market.”

He cited the same toxic combination of stamp duty, surcharges, changes to non dom status and uncertainty surrounding Brexit negotiations and the government.

However in Hampstead the weakening pound following the referendum result has encouraged some overseas investors.

“The only upside is that some of the rental investors that we are seeing are bringing foreign money across because of the slight improvement in the exchange rate,” explained Mr Griver.

“The majority of rental investors are foreign. Not necessarily an increase, but an increase percentage wise.”

Across London in 2017, 33 per cent of overseas landlords are based in Asia, according to the data from Countrywide. 28 per cent are from Europe (down from 39 per cent in 2010), 10 per cent North American, and 9 per cent from the Middle East.

In Hampstead however the current buy-to-let investment appears to reflect the strong dollar against the pound.

“We’ve got a lot of money coming over from America at the moment,” said Mr Griver.

Following today’s ONS inflation release today the pound dropped further to $1.30.

Despite a lull in Russian interest reported in the upper echelons of the prime and super prime market, the rouble seems to be returning – if it ever really left.

“We always see a lot of Russian investment and that certainly seems to still be there.”

Related articles

Other Hampstead and Highgate property news

New property development Clarendon opens in Haringey Heartlands

Property developers St William are transforming the old Clarendon Gasworks into a residential and commerical city village as part of the Haringey Heartlands development.

Wasps: a total nuisance or horticultural hero?

They may be the biggest nuisance at summer barbecues, but wasps are also of great benefit to the garden - but how so? A top entomologist reveals all

Seven ways to make sure your dahlias dazzle this summer

As dahlia societies nationwide stage their annual shows this month, expert Katie Kingett offers seven tips to success with these late summer showstoppers

Rug designer Sonya Winner, opens showroom in Dartmouth Park

Emma Rice talks to rug designer Sonya Winner about her passion for colour and her new inspirational showroom in Dartmouth Park

Inside the St John’s Wood home of interior designer, Brian Woulfe

This elegant apartment in St John’s Wood has been carefully curated by interior designer and former concert pianist, Brian Woulfe

Most Read

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

2018 © Archant Community Media Ltd

Terms and conditions | Cookie policy | Jobs at Archant