The latest figures from Hamptons reveal a significant shift in the composition and scale of international demand for UK residential property. According to their analysis, just 1.0% of individuals registering to buy a home in Britain in Q1 2025 were based overseas—the lowest proportion since records began in 2008.
Even in Prime Central London (PCL)—long seen as the epicentre of international investment—the share of overseas-based prospective buyers has fallen to 2.9%, down from a peak of 7.9% in 2009. This ongoing trend suggests a recalibration of global investor sentiment towards the UK housing market, particularly in the wake of prolonged economic, political, and fiscal shifts.
Shifting Geographic Dynamics
The data reveals a marked decline in European interest, with Europeans accounting for 43% of overseas house hunters in early 2025, down from 48% in 2008. This contraction appears to be driven by a mix of post-Brexit mobility constraints, pandemic-era legacy impacts, and increased transactional costs, such as higher stamp duty on non-residents.
Conversely, North American demand is on the rise. Buyers from the United States and Canada made up 16% of all overseas applicants in Q1 2025—more than doubling the 6% recorded in 2008. Significantly, the majority of these buyers—nearly 75%—intend to relocate permanently, indicating a longer-term lifestyle and investment commitment to the UK.
Taxation, Price Growth and Regulatory Impact
Hamptons attributes the softening of international demand to a confluence of factors: Brexit, COVID-19, and a more burdensome tax regime for overseas buyers. In 2015, before the EU referendum, overseas-based applicants made up 2.0% of all house hunters. By 2025, that figure had halved.
In Prime Central London, where prices have increased by a mere 3.0% over the last decade (Land Registry), international interest has particularly waned. This suggests that sluggish capital growth, combined with higher acquisition costs, has dampened the perceived investment potential of the capital’s most prestigious postcodes.
Changing Global Profile
Notably, Americans and Canadians now constitute the most significant single overseas buyer group, surpassing the French, who held that position in the years preceding Brexit, and Hong Kongers, who led demand following the introduction of the British National Overseas (BNO) visa in 2020.
Meanwhile, Middle Eastern interest has reached a record high, with buyers from the region comprising 14% of all international applicants—up from 8% in 2008. Of particular significance is the sharp increase in permanent relocation intent: 81% of Middle Eastern applicants in Q1 2025 were seeking a full-time residence in the UK, compared to just 70% a decade ago.
In contrast, demand from Hong Kong has decreased notably. After accounting for 17% of international applicants in 2020, their share has dropped to 2% in Q1 2025—the lowest on record.
Liverpool and Manchester: Regional Powerhouses for International Property Investment
While international buyer interest in the UK has declined nationally, regional cities such as Liverpool and Manchester continue to attract overseas investment, offering more accessible entry points and stronger growth potential than traditional hotspots like Prime Central London.
These Northern Powerhouse cities have gained increasing attention from overseas investors due to their comparatively low property prices, high rental yields, and ongoing urban regeneration. This is particularly appealing to North American, Middle Eastern, and Asian buyers who prioritise long-term value and return on investment.
“Liverpool is fast becoming one of the UK’s standout cities for property investment in 2025,” says Pat Harper, Director at Total Property Group.
“We’re seeing a noticeable uptick in interest from international clients—particularly from North America and the Middle East, who are attracted by the city’s strong rental returns, affordable entry points, and long-term regeneration plans.”
Liverpool: A City on the Rise
Liverpool’s property market has become a magnet for overseas buyers seeking high yields and capital growth opportunities. According to industry data, rental yields in parts of the city exceed 7%, significantly outpacing London’s core zones.
Ongoing investment in key infrastructure—such as the £5 billion Liverpool Waters development and the expanding Knowledge Quarter—has further solidified the city’s status as a growth hub. Moreover, Liverpool’s large student population and expanding tech and creative sectors provide a consistent demand base for residential and buy-to-let investments.
Manchester: The Northern Commercial Capital
Manchester continues to rank as one of the most investable cities in the UK, frequently cited in global real estate reports for its resilient housing market and business-friendly environment.
International buyers are drawn to Manchester’s economic dynamism, employment growth, extensive transport links, and direct international connections via Manchester Airport. With ongoing developments such as HS2 and the city’s ambitious zero-carbon plans, Manchester appeals not just as a property market but as a sustainable, future-facing urban centre.
A Regional Strategy for Global Investors
With London’s premium market experiencing subdued growth and rising acquisition costs, more overseas buyers are shifting focus to regional cities with a more favourable yield-to-cost ratio.
For investors seeking diversification and scalability in the UK, Liverpool and Manchester represent strongholds of opportunity underpinned by regeneration, university-driven demand, and increasing international awareness.
As the international investment landscape continues to evolve, the UK housing market faces a period of recalibration. Factors such as immigration policy, tax legislation, and geopolitical realignments will remain critical in shaping demand patterns moving forward. RCCIL will continue closely monitoring these trends, offering data-driven insight and analysis to support investors and policymakers alike.