Expat Buy To Let Investors See Rentals Stagnating

Rentals on expat buy to let properties are now stagnating in a number of formerly profitable areas.

It seems the slowdown in rental increases across the UK is continuing into 2018 after seeing an average rent rise of 1.1 per cent across the board last year.

London property rentals rose by just 0.1 per cent in 2017, with the largest average increase seen in Wales at just 1.4 per cent. According to real estate companies, the overall slowdown began late in 2015 and is expected to continue during the remainder of this year.

Expat buy to let investors with properties in the North Eastern regions are seeing zero rates of increase, according to a report from the Office for National Statistics, with the overall picture showing poor results across the UK as being connected with the slowdown on rental increases in London. At the same time, stricter regulations covering buy to let mortgages are negatively affecting the market for overseas investors.

Last September, landlords classed as professionals as they have four or more rental properties saw a slowing down of application processes as well as a general tightening of the buy to let mortgage market. According to the National Landlords’ Association, the ONS findings show the changes are now affecting landlords’ ability to get financing to increase their property portfolios.

The association points out privately rented homes comprise some 20 per cent of the UK housing market, with incentivising professional landlords to continue providing affordable, quality housing essential in order to cope with increasing demand. The research, it says, seems to prove that the opposite effect is threatening the sector as a whole.