Overseas demand for UK property falls to record low
Data from estate agency Hamptons International has found that just 1% of prospective buyers over the first quarter of 2025 was based overseas. This is down from 1.2% in 2024 and is the lowest percentage since 2008 when Hamptons began to record this data.
The decline is believed to be due to a combination of higher stamp duty costs for overseas residents as well as the abolition of the non-domiciled tax regime. According to The Times, foreigners looking to buy property in England or Northern Ireland face a 2% stamp duty surcharge.
“Tax changes have stemmed the flow of overseas house hunters,” said Aneisha Beveridge, Head of Research at Hamptons. “Stamp duty increases, particularly for those purchasing second homes, combined with Brexit and amendments to the tax treatment of non-doms, have added to costs and reduced the lure of property in the UK.”
The impact has been especially felt in the central of London which has traditionally been a hotspot for overseas buyers. Just 2.9% of applications for homes in some areas, such as Kensington, Chelsea, Westminster, and the City, were based outside of the UK. The peak was 7.9% in 2009.
While the country’s cultural appeal and legal stability is still attractive to international buyers, the financial argument has waned, according to Beveridge.
“For those immigrating for an undetermined period, the cost of buying property and the prospect of little or no capital growth, as seen over the last decade, have led many to opt for renting instead,” she said.
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