International landlords on rise in UK

HONG KONG residents account for more than a quarter of all completed buy-to-let mortgages taken out by international borrowers, according to data from Skipton International.

HONG KONG residents account for more than a quarter of all completed buy-to-let mortgages taken out by international borrowers, according to data from Skipton International.

The Guernsey-based bank, which is owned by the building society, said 26.4 per cent of all the buy-to-let mortgages for UK properties that it has given out this year have been to Hong Kong residents. UAE-based borrowers account for 14.7 per cent, while 12.5 per cent have gone to people in the US.

Lorraine McLean, Skipton's head of buy-to-let lending, said Hong Kong and Jersey residents have become increasingly active in the UK buy-to-let market. In 2013, the proportions of landlords from Hong Kong and Jersey were 4 per cent and 2 per cent respectively. That rose to 9 per cent for Hong Kong and 4 per cent for By Geoff Ho Jersey last year. Since then it has risen to 10 per cent and 7 per cent.

In comparison, Australia has seen its share of UK buy-to-let landlords fall from 12 per cent in 2013 to 10 per cent, Ireland is down from 11 per cent to 8 per cent, and the UAE is down from 6 per cent to 4 per cent.

McLean said: "Last year a lot of Hong Kong residents felt insecure. Maybe they are buying security for the future or maybe it's a part of their retirement planning."

She said that while Jersey had seen a surge in buy-to-let mortgages for properties on the British mainland, a large part of the rise is likely down to companies registered on the island.

International landlords' demand for buy-to-lets was nationwide, not confined to London, she added.

This article was written by Geoff Ho of Sunday Express, and we are publishing it with their permission.