North Americans (US and Canadian buyers) are now the fastest-growing international buyer group in Britain. In the first quarter of this year, they accounted for a record 19% of all overseas-based applicants looking for a property in Great Britain, up four percentage points on last year and eleven points higher than a decade ago.
Overall, there were 13% more North Americans registering to buy property in Great Britain in Q1 2026 than in the same period last year, despite a 10% overall decline in international registrations. This reflects how UK property - and London in particular - is increasingly being viewed as good value by North American buyers. Competitive prices, favourable exchange rates alongside more lifestyle-related benefits are encouraging more of this cohort to see Britain as a place to live, not just invest.
European buyers remain the largest single overseas group, accounting for 54% of international applicants. While their share is broadly unchanged year-on-year, European applicants now stand eight percentage points lower than a decade ago – in part a lasting legacy of Brexit. Much of this longer‑term decline has been driven by reduced demand from French and Spanish buyers, who made up a far larger share of international applicants a decade ago. In contrast, interest from North American buyers has more than doubled over the same period.
There has been no rebound in Middle Eastern buyer activity
So far, there are no signs of an uplift in demand from Middle Eastern buyers looking to buy into Britain’s housing market. Applicants from the Middle East accounted for just 5% of all overseas‑based house hunters in Q1 2026, the lowest share recorded since 2013 and down 1% year-on-year.
Registrations from the region fell sharply following the outbreak of war, declining 27% month‑on‑month and standing 58% lower than in March last year. This appears to reflect caution around new purchases, with many Middle Eastern households retaining existing UK homes, opting to rent as a stop‑gap, or choosing to base themselves in other countries.
Where are they buying? London regains ground
While international demand declined across most of Great Britain, the same cannot be said for London. London was the only region to see growth in overseas buyer interest in Q1 2026, with international registrations rising 8% year‑on‑year.
As a result, a quarter (25%) of all international enquiries were focused on the capital, up from 21% a year ago and marking the largest annual increase of any UK region. This likely reflects sluggish price growth, which in recent years has made London look better value than in the past. The average property in the capital is now 3% (or £18,000) cheaper than in 2022, while values in Inner London are down 7%, or around £50,300, over the same period.
For North Americans specifically, their appetite for living in the capital continues to grow. More than a quarter (28%) of North American applicants were searching for a property in London, up from 24% a year ago and 17% five years ago.
However, this demand is far less concentrated in prime central London (PCL) than in previous cycles. Just 5% of North American applicants were looking to buy in PCL, down from 13% at the market’s peak in 2013. Instead, buyers are increasingly favouring more affordable parts of London and other UK cities, where budgets stretch further, particularly at a time of higher interest rates. The average budget of a North American buyer looking in PCL stood at £2.35m, compared with £1.25m for those looking across the capital.
Outside London, international demand fell across every region, with the steepest falls seen in Scotland (-26%), Wales (-27%) and the South West (-20%), where appetite from overseas buyers remains limited. The slowdown in international demand largely reflects higher stamp duty costs and a tougher tax backdrop, particularly for overseas investors. An international buyer purchasing a £1 million home in England would now face a stamp duty bill of £63,750, rising to £113,750 if they were buying a second home or a buy‑to‑let. Even as rental yields improve, those upfront costs are becoming harder to justify, pushing investment elsewhere.
What are they buying? Fewer investors, more permanent movers
Consequently, the profile of international buyers continues to shift away from investors towards owner- occupiers, mirroring broader domestic trends. Over the past decade, the share of overseas‑based applicants looking for a buy‑to‑let property has fallen from 17% to 12%, while the proportion seeking a second home has more than halved, from 6% to just 2%. Together, this reflects the cumulative impact of higher stamp duty surcharges and less favourable tax treatment for overseas landlords.
At the same time, first‑time buyers accounted for 23% of all international applicants in Q1 2026, nearly three times the share recorded a decade ago. Among North American applicants in particular, 27% were first-time buyers, while only 10% were seeking an investment property. This suggests that more overseas-based buyers are seeing London as a place to put down roots, rather than as an investment.
