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

Property search

e.g. Oxford or NW3
Powered by Zoopla

Other Hampstead and Highgate property news

David Walliams is selling Noel Gallagher’s former Belsize Park home

Britain’s Got Talent judge and author David Walliams is selling his Hampstead home for 5.35million with Marcus Parfitt.

Column: Simon Gerrard on choosing the right area to live in

Good fences make good neighbours goes the saying, but fellow residents can have an impact on the enjoyment of your home. North London estate agent Simon Gerrard shares his tips for finding the perfect location.

Seven tips for creating a wellbeing boosting garden

Matt Keightley, the designer behind the Feel Good Garden at this year’s RHS Chelsea Flower Show, reveals how to make your own outdoor space more soothing. By Hannah Stephenson

Nine ways gardeners can be more waterwise this summer

Want to save your plants and save water? Go easy with the sprinkler and embrace these expert suggestions instead, says Hannah Stephenson

For sale: New show homes open at Highgate development

Two new show apartments have opened at a luxury development in Highgate.

Elegant cottage formerly home to renowned poet, A.E Housman, now for sale in Highgate Village

A cottage in Highgate Village where the renowned poet A.E Housman once lived is now available to buy.

Comment: A War of the Roses? The challenges of dealing with property and divorce

Trevor Abrahmsohn, MD at north London agents Glentree, writes about his encounters with divorcing couples selling the marital home

Home of the week: Handsome 5 bedroom property in Hampstead perfect for a family

On the market for the first time in many years is this attractive, substantial detached double fronted family house located in a prime location.

Fancy owning a Picasso? It’s not impossible says Belsize Village gallery owner

Emma Rice talks to Andrea Sylvester about art and how we could all potentially own a Picasso or a Chagall, if that’s what we love

Callender Howorth interior designers transform Grade II-listed home in Hampstead

Mark Howorth, the founder of luxury interior design firm Callender Howorth, tells us how he brought elegant Indian influences to a period property on NW3’s Heath Drive

Primrose Hill artist Michal Cole on transforming her paintings into woven masterpieces

“It’s actually bringing these paintings back into what they used to be in the Renaissance times – as tapestries.”

Home improvements: How to make a rustic hanging rail

Fancy getting stuck into a creative project? Try your hand at woodworking and hang your coats on this minimalist marvel.

Home of the Week: Handsome four-bedroom Victorian terrace in Dartmouth Park

An attractive four-storey Victorian family home on the upper slopes of peaceful Dartmouth Park

Most Read