The proportion of international applicants in UK property fell to 1% in the first quarter of 2025, the lowest level on record, Hamptons research has revealed.
In Prime Central London, 2.9% of prospective buyers were based overseas, down from a peak of 7.9% in 2009.
The decline in demand has been predominantly driven by fewer Europeans relocating to the UK, as they made up 43% of overseas hunters in Q1, down from 48% in 2008.
Aneisha Beveridge, head of research at Hamptons, said: “Political events worldwide continue to influence demand for UK property from international buyers.
“But more recently, it’s tax changes that have stemmed the flow of overseas house hunters.
“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 case for buying a home, particularly in Prime Central London, has become increasingly tenuous for some international buyers.
“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 in PCL, have led many to opt for renting instead.
“That said, access to all the amenities and culture that London offers, combined with the country’s robust legal system, continues to attract money from overseas from those looking to buy.”
At country level, Americans and Canadians are now the largest single international buyer group from overseas – a title previously held by the French for most years leading up to Britain’s departure from the EU, and more recently, Hong Kongers.
Demand from Middle Eastern buyers has also risen. This year, they made up 14% of all international applicants looking to buy in Great Britain, marking a new high and up from 8% in 2008
In Q1 2025, 81% of applicants from the Middle East were looking for a permanent new home, the highest on record and up 11% compared to a decade ago when many were purchasing second homes in the UK.