What overseas landlords need to consider when investing in, and renting out, London property

For many years, London has been an attractive choice for international investors who have been drawn to the London property market due to the capital growth and good rental returns. Most investors take a long term view and will look to rent properties for many years.  

For many years, London has been an attractive choice for international investors who have been drawn to the London property market due to the capital growth and good rental returns. Most investors take a long term view and will look to rent properties for many years.  With this in mind, the relationship between overseas landlords and their chosen letting agent can be a long term one.  When choosing an agent, we would advise that the following factors are considered:

  • As a landlord based overseas, ensure that your agent is used to dealing with clients based abroad and who has the global reach to be able to offer local service across the world.  For example, as well as a network of London offices, CBRE has international offices.  This means that a client based in say, Hong Kong, can have the reassurance of a Hong Kong based team on call, as well as the London team.
  • Ensure that your agent is well versed in the difficult and complicated tax implications for overseas landlords.  CBRE is well qualified in this area and in fact can offer an introduction to a specialised tax accountancy service for any queries in this area.

  • Your chosen agent needs to have a professional and dedicated property management and accounts operation, ensuring that your property is professionally managed during the tenancy, as you will not be present to do this.  CBRE has a centralised management team who specialise in managing new build blocks (which we very often sell on behalf of the developer).  In the same way, we are able to offer a specialised new build handover service for clients, where we liaise between developer and client at completion stage.

  • Finally, choose an agent with an excellent track record at securing top quality tenants at good rents, for long term tenancies.  As the largest property advisor in the world, we are superbly placed, through our network of corporate contacts, to supply high calibre tenants.  With our network of London branches we are also well positioned to deal with almost all residential developments across the capital.

If you are interested in investing in a buy to let property in Central London please speak to a member of our team today.