An Accountancy Group has reported that there are more than 2.4 million foreign landlords operating in the UK and that this year has seen a massive surge.

 

The Accountancy group findings came when they analysed data received from HMRC that highlighted the number of foreign landlords in the UK had increased by 6% this year from 1.93 million up to 2.4 million.

 

Since 2008 there had been an overall increase of 39% from 1.46 million in 2006/2007.

Mark Giddens, Head of Private Client Services in the Accountancy group’s London office, said: “…Foreign investment in UK property is not just about the purchase of trophy homes.  Increasingly overseas investors are targeting buy-to-let properties, and in particular their investment in new build properties is funding a much needed boost to the supply of quality homes in the rental market.”

Although there is a constant increase in numbers of foreign landlords the group suggests that this may end. The Government’s recent statement saying that it intends to charge Capital Gains Tax on any sales of properties owned by foreign investors could immediately halt the influx of foreign investment.

Since 2008 the HMRC’S income derived from foreign landlords' tax has risen from £230 million to £379 million – an increase of 64%.

 

Giddens also said, “While HMRC has already increased its tax take on foreign-owned properties in recent years, the Government’s Autumn Statement is looking to ensure that the Exchequer gets an even greater share of the substantial revenue generated by London’s high end property market.”