The Greater London area and the South East of England are becoming hotspots for British expats investing in UK property to let out while they are living abroad says new research.
The data from Skipton International revealed that London and the South East accounted for 65% of all expat buy to let properties with:
- 40% investing in Greater London;
- 25% buying investment properties in the South East;
- 10% buying in the South West and the North West;
- 15% buying investment properties in the rest of England and Wales.
A spokesman explained: “Property prices in London have increased significantly in the past few years, meaning that capital gains have been very attractive for investors. British expats have many reasons for investing in buy to let property in the UK and long term investment is usually the most important.”
A previous study from Skipton highlighted that 35% of expats cited long-term investment as their main driver for investing in the UK buy-to-let market. Other reasons included:
- pension planning (19%);
- wishing to remain invested in the UK property market (12%);
- rental income (10%);
- unwillingness / inability to buy property in the country of residence (9%);
- security of investment (3%).
The number of British expats investing in the UK property market has increased in recent years. Previously, expat mortgage products were not readily available, with the expat buy to let sector typically only available to cash buyers.
However, expat buy to let mortgages as well as landlord’s insurance for expats, while still specialist products, are becoming more readily available.