New research suggests Government attempts to introduce an extra property tax for overseas investors may have little impact as many have already turned away from the UK.

The Government is planning a 1% extra Stamp Duty charge for overseas-based property buyers, but data based on activity across Countrywide brands shows the proportion of international-based landlords fell from 14.4% in 2010 to 5.8% in the first 11 months of this year.

Every region has recorded a fall, but London has seen the biggest drop off with the proportion of homes let by an overseas based landlord falling 15.5% since 2010 to 10.5%.

The proportion of homes let by an overseas landlord in the capital has fallen 4.7% in the last two years alone, the data shows.

However, London still has the highest proportion of homes let by an international-based landlord than in any other region

Outside the capital, Yorkshire and Humber has the highest proportion of homes let by an overseas based landlord at 6.7%.

Western Europeans make up the biggest group of overseas based landlords (34%), followed by Asian (20%) and North American (13%).

However, the biggest increases in overseas landlords has been those from Asia and the Middle East, up 2.1% and 1.4% respectively since 2010.

Meanwhile, the data shows the average cost of a new let in Great Britain rose 1.1% year-on-year in November to stand at £968 per month.

Every region recorded a rise in average rents, but the east of England saw the strongest growth at 2.9%, followed by 2.5% in Scotland and 1.9% in Wales.

Greater London saw the slowest rental growth, with rents rising 0.1% year-on-year.

Aneisha Beveridge, head of research at Countrywide brand Hamptons International, said: “The proportion of homes let by an overseas based landlord has more than halved since 2010.

“Sterling’s depreciation since 2016 undoubtedly makes it cheaper for international buyers to purchase property in Great Britain.

“However, the conversion of pounds back into local currency means additional costs which cut into an overseas landlords’ monthly income.  This combined with a harsher tax regime for overseas investors is dissuading some international investors from entering the rental market.

“Throughout this year rental growth has been sluggish, averaging 1.5% and only passing 2% on two occasions.

“Affordability is not just an issue for those looking to buy a home, but impacts tenants paying rent too. These affordability barriers will continue to keep a cap on rental growth in the future.”