Proposed ground rent caps in England and Wales are seen as benefiting overseas property investors, including those from Hong Kong and Mainland China. However, new rules regulating rent setting are currently slowing demand for properties in the area.

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. An estimated 203,000 homes in England and Wales are registered to owners with an overseas address. Hongkongers hold 14 per cent, making them the largest group of foreign investors in the...