UK property 'attractive' to European landlords
by Sarah Ashcroft
A growing number of European property owners are engaging with the UK market in a bid to enjoy higher yields, one industry expert has claimed.
According to author, investor and professional speaker Dr Rohan Weerasinghe, there are several reasons individuals from overseas are looking to local shores to expand their property portfolios
Highlighting particular interest from landlords in Italy, Dr Weerasinghe claimed that some residential or commercial buildings purchased in foreign countries typically produce very little positive income after mortgage payments and outgoing costs are deducted.
He noted that UK rental markets can achieve yields from five per cent in the right areas up to 20 per cent, which could result in higher returns for investors at the end of the month.
An ever-increasing demand for rental properties in both private and social housing sectors in the UK has also been noted by foreign investors, who may be looking for higher income in the current economic climate.
Dr Weerasinghe noted that UK and overseas investors are currently helping to ease a housing shortage across the country by providing a supply of homes to meet this need.
He added: "The abundance of property strategies and type available across the UK is one of the major attractions for international investors."
In addition, the industry expert pointed to more relaxed lending criteria for buy-to-let products - something that is increasingly important for foreign landlords.
"The rental property [market] is treated like a business, which means that an individual can own many properties," Dr Weerasinghe explained. "When I was in Italy, they found this incredibly appealing. There are even specific mortgages available for overseas investors."
This sentiment was echoed by Alex Michelin, co-founder of premium property improvement firm Finchatton, who said foreign buyers are becoming increasingly interested in the UK market because it is both "safe and secure".
- Manage your buy-to-let portfolio with Property Portfolio Software: helps landlords track rental arrears, increase cash flow, pinpoint poor performing properties and much, much more...
Published on: October 23, 2012
Did you like this article? Share it!