Britons missing out on overseas rental income

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by Kay Murchie

According to research by MRI Overseas Property, 24 million people Britons would consider buying an overseas holiday home but just 15% would consider letting this property for rental income which means they are missing out on potential rental revenue from their holiday home.

Nearly 30% of overseas property owners only visit their property twice a year, MRI said these people might not maximise their investment if they don’t have plans to rent out the property for the remainder of the year.

MRI added that the average monthly rental is currently £800 so many overseas homeowners could potentially be missing out on earning thousands of pounds in rental income and now is a good time to begin letting a property abroad added the company.

Olivia Mullan, head of rentals for MRI, said as the property market reaches maximum value levels in the UK, an increasing amount of British people are looking abroad to get a solid return on their investment and holiday homes can provide the perfect solution due to a constant demand for accommodation by British holidaymakers.

Ms Mullan added that with the possibility of further interest rate rises and the current economic climate here in the UK, seasoned buy-to-let experts are beginning to look further afield. 19% of British landlords have said if interest rates reach 6%, they will consider buying property overseas for a better return on their investment.

A recent study by NatWest International discovered that a quarter of a million people from the UK owned a foreign property, mainly in European countries such as France and Spain.