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Category: property market
There is potentially good news for property investors, as overseas investors ease back from purchasing UK buy to let properties.
Data from estate agent, Hamptons, shows that overseas investors registering to buy property through the Countrywide network of estate agents has halved over a decade.
In 2015, foreign investors looking for property in the UK sat at 2 percent of all prospective homebuyers in the UK. Jump ahead ten years and in quarter one of 2025 this dropped to just 1 percent – the lowest it has ever been.
Tax changes, Covid-19 and Brexit drive change
Since 1st April 2021 international citizens have been subject to different Stamp Duty Land Tax (SDLT) charges when buying a property in the UK. This rule applies whether the property will be the person’s home or an investment.
Second homes attracted another hike in tax following the October 2024 Budget.
Now not only is there a 2 percent surcharge as a result of being an international buyer, but a further 5 percent when buying a second home.
In combination with tax changes, the Covid-19 pandemic and Brexit have been behind the changing investment dynamics, according to Hamptons findings.
Even in central London - the country’s capital and largest business hub – demand from overseas property investors has significantly declined, sitting at 2.9 percent of house buyers versus a 2009 peak of 7.9 percent.
Speaking on the findings, 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 prime central London, have led many to opt for renting instead.
UK investors could benefit from waning overseas investment
With reduced upward pressure on property prices from overseas, investors in the UK may find that there are deals to be done to achieve their own investment plans.
There are competitive mortgage interest rates available to UK investors, starting at sub-three percent at the time of writing.
If you need help getting a specialist buy to let mortgage, speak to our expert broker team. Call on the Freephone number above or enquire online.
