The proportion of overseas landlords in Great Britain hit record lows in 2017, declining from 12% in 2010 to 5%.
Countrywide’s Monthly Letting Index revealed that London has seen the largest fall, falling from 26% in 2010 to 11% in 2017.
European based landlords have seen the most dramatic declines, with just 28% of all overseas landlords in London being based in Europe.
The index includes a new feature entitled ‘index methodology’ which outlines the average price of a new let in Britain rose by 1.1% year-on-year in June 2017 to stand at £950pcm.
Johnny Morris, research director at Countrywide, said: “The growth of the private rented sector since 2010 has not been driven by overseas investors
“Rental growth remained at 1.1% in June. Falls in London were off-set by higher growth across the rest of the country.
“The fall in the capital was driven by lower rents in the outer areas of London as the ripple effect from falling rents in Central London continues.”
The average overseas based landlord earnt 35% more in rent last year than one living in the UK and over half of the income earnt by overseas landlords came from rental homes in London.
The data flies in the face of suggestions that the weaker pound due to Brexit would attract more investment in UK property from overseas.
It’s possible the 3% stamp duty surcharge introduced on buy-to-lets and second homes introduced in April 2016 has had a cooling effect, while landlords are also having to cope with a gradual reduction in mortgage tax relief.