International investment in UK residential property rises, with Asian buyers leading the charge.
Recent data highlights the growing role of foreign buyers in the UK property market, particularly in London. Analysis by TwentyCi reveals that 828 properties were purchased by overseas buyers in the first half of 2024, representing 0.33% of all properties sold in England and Wales—an increase from 0.31% during the same period in 2023.
In London, international purchases accounted for 27% of sales in the first quarter of 2024, up from 24% in the previous year, according to Hamptons. The trend is echoed across southern England, where foreign buyers made up 17% of purchases in Q1, a 4% rise year-on-year.
Shifting Regional Focus
- EU buyer numbers in London have dropped by 9% since Brexit’s withdrawal agreement in 2020.
- Asian buyers now represent 11% of foreign transactions in London, up from 6% in 2016, with Indian buyers contributing to 40% of those transactions—a 9% annual increase.
- Conversely, Hong Kong buyers have decreased significantly, falling by 19% over the past year, a decline attributed to the conclusion of the British National Overseas (BNO) visa surge in 2021.
Emerging Trends in Buyer Demographics
- US buyers now account for 14% of foreign national inquiries, up from 11% last year, according to Countrywide.
- Research from Hamptons indicates that for every absentee foreign investor, 2.7 international buyers now plan to relocate to England and Wales.
Off-Plan Market Transformation
The off-plan property market has experienced a seismic shift since increased stamp duty surcharges were introduced on additional homes. First-time buyers now outnumber investors 2:1, a complete reversal of 2016, when investors dominated the sector.
This data underscores how changing taxes, geopolitical developments, and evolving buyer priorities are reshaping the landscape of the UK’s property market. As trends continue to unfold, London remains a key focal point for global investors.
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