Media365
A proposed cap on the ground rents paid by leasehold homeowners in England and Wales is seen as favouring foreign property investors, including those from Hong Kong and mainland China, but another measure tightening rules in setting rents is dampening demand ahead of its implementation, according to analysts.
Hong Kong-based investors own about 19 per cent of foreign-owned homes in the British capital, while mainland Chinese account for about 12 per cent.
A fundamental change, however, is ushering in a new landscape for rental properties. British lawmakers enacted the Renters’ Rights Act (RRA) last year, which banned landlords from evicting tenants within 12 months of the lease start, among other changes.
It also mandates that landlords give tenants two months’ notice for any rent increase and requires setting the new rent to the market rate. Should a tenant find the increase excessive, they can challenge the landlord at a designated tribunal.
