Foreign Interest In UK Property At Lowest Level On Record

Foreign demand for UK property has fallen to its lowest level on record, while some British buyers are increasingly turning their attention to overseas markets in search of better value, lifestyle opportunities, and investment potential.

According to new research by estate agency Hamptons, just 1% of prospective homebuyers in Great Britain were based overseas in the first quarter of 2025 — the lowest share since the company began tracking the data in 2008.

In Prime Central London, the share of international buyers fell to 2.9%, down from 4% the previous year and well below pre-Brexit peaks of 5–7%.

Hamptons attributes the decline to higher stamp duty surcharges on second homes, the abolition of the non-dom tax regime, and Brexit’s continued dampening effect on European relocation flows.

The slowdown in overseas buyers has coincided with instability in the domestic property market.

HMRC data shows residential property transactions in April 2025 plunged to 55,970, a 66% drop compared with March, following changes to stamp duty thresholds. Although transactions recovered to more than 93,000 by June, analysts expect overall transaction volumes to fall by 3.8% across 2025–26.

With affordability stretched, borrowing costs elevated, and housing supply tight, a growing number of Britons are researching property markets abroad as an alternative to competing in a volatile domestic market.

Countries with lower entry prices and lifestyle appeal — such as Spain, Portugal, Greece, Croatia, and Bulgaria — remain perennial favourites. Southern Europe continues to attract retirees and second-home buyers, while lower-cost Eastern European markets appeal to investors seeking higher yields and renovation opportunities.