Skipton International survey reveals 85% of British expats surveyed would still invest in UK buy-to-let property
A survey by Skipton International has found 85% of British expats surveyed would not be put off investing in buy-to-let property in the UK.
Recent changes such as the introduction of a 3% stamp duty levy on buy-to-let properties, and the future removal of mortgage interest rate relief for landlords would only put 15% of potential overseas buyers off investing in buy-to-let property in the UK.
The Skipton International survey found that 87% of overseas Buy-to-let investors expect their rental income to increase or stay the same for the next 12 months, while 70% of investors expect the value of their property to increase over the next 12 months.
Skipton International surveyed over 150 British expats between March-April 2016. Of those questioned, 35% said long-term investment was their main reason for investing in buy-to-let properties in the UK. Other reasons included pension planning (19%), a desire to remain invested in UK property (12%), rental income, and difficulties or reluctance to buy in their country of residence (both 10%).
Although UK property is still clearly a popular choice for British expats, 75% of those surveyed also believe the government is making UK property less attractive to overseas investors.
Out of various measures introduced by the government, 38% of those surveyed said the introduction of the 3% stamp duty levy was the main reason that would put them off investing in, or increasing their investment in UK buy-to-let. 25% cited the removal of interest rate relief for landlords as the most off-putting factor, followed by 11% fearing the UK is generally becoming less landlord-friendly.
Jim Coupe, Managing Director, Skipton International, said: “The UK continues to be a popular place for overseas investors. This survey shows that British expats view UK property as a long term investment. Although recent changes may discourage a small number of investors, the vast majority are still confident about investing in UK buy-to-let.
“The results of the survey correspond with the increasing levels of demand we see for our expat mortgages from British residents around the world.”
Since launching expat buy-to-let mortgages in 2014, Skipton International has helped over 400 British expats secure investment properties in the UK.
Skipton created the buy-to-let mortgage in response to the difficulties overseas investors face when taking out mortgages on rental property. Earlier this year Skipton opened up their mortgages to self-employed applicants, while expanding their eligible country list to assist even more British expats.
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Skipton International offers a range of offshore savings accounts and is one of the Channel Islands’ leading mortgage lenders.
In 2014 Skipton International launched a range of mortgages for British expats looking to purchase a Buy-to-let property in the UK. For more information on Skipton International please visit www.skiptoninternational.com
Skipton International was recently named Guernsey Business of the Year at the Awards for Achievement. The bank has been at least commended by Moneyfacts for the past six years, winning on two occasions while independent research from Feefo shows 95% of customers rate Skipton’s service as Good or Excellent.