According to data from estate agency Hamptons International, only 1 per cent of prospective buyers in the first quarter of 2025 were based overseas — down from 1.2 per cent in 2024 and the lowest proportion since Hamptons began collecting the data in 2008.
The decline has been largely attributed to a combination of higher stamp duty costs for non-UK residents and the abolition of the non-domiciled (non-dom) tax regime.
The UK Times reported that foreign buyers purchasing property in England and Northern Ireland now face a 2 per cent stamp duty surcharge, which has further added to the financial burden of investing in UK real estate.
“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 particularly pronounced in central London, traditionally a hotspot for global buyers.
Only 2.9 per cent of applicants for homes in areas such as Kensington, Chelsea, Westminster, and the City of London were based overseas — a sharp drop from a peak of 7.9 per cent in 2009.
Ms Beveridge noted that while the UK’s cultural appeal and legal stability still attract international investment, the financial case for buying — especially in high-end markets — has weakened.
“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.
The data also reveals a geographic shift in foreign buyer interest.
While London continues to attract a global audience, more overseas buyers are now considering northern regions of England.
In Q1 2025, 10 per cent of international applicants were looking to purchase in the north, up from 5 per cent in 2015.
In terms of origin, European nationals still made up the largest share of international enquiries at 43 per cent, followed by North America (16 per cent), the Middle East (14 per cent), and South Asia (7 per cent).
However, North American interest — particularly from the US — has more than doubled since 2008, fuelled by a strong US dollar and broader political considerations.
Recent data from Knight Frank’s Wealth Report also underscores the long-term price shifts in the UK’s capital.
In 2025, $1 million (around £800,000) buys 34 square metres of property in London — a 43 per cent increase in space compared to a decade ago.
