Over the past decade, international demand for property in Great Britain may have dwindled, predominantly as a result of Brexit, the pandemic and stamp duty increases. But the American love affair with London real estate has become more fervent, and the North of England is gaining a new fan base. Liverpool is fast emerging as the Northern star.
In the first quarter of this year, househunters from overseas made up just 1.1% of those registering to buy a home in Great Britain. This was the second lowest figure on record. In 2009, such househunters accounted for 2.8% of applicants.
In Kensington & Chelsea and Westminster, 3% of those registering to buy a property this year came from overseas, down from 8% in 2019. Fewer Europeans are now shopping for real estate in these two Prime Central London locations, which is almost certainly a consequence of Brexit.
Ten years ago, in the first quarter of 2015, EU purchasers made up as many as 43% of all international applicants. By the same period of 2019, their numbers had fallen, making up 39% of those registering. This proportion remained unchanged in the first quarter of this year.
Buyers from North America and the Middle East have supplanted the EU crowd. Indeed, in 2021, applicants from the US and Canada overtook people from Hong Kong to become the largest group of international househunters.
"In the first quarter of this year, applicants from overseas made up just 1.1% of those registering to buy a home in Great Britain."
Today, Americans and Canadians account for 14% of international applicants, against 10% in 2020 and 4% in 2010. Significantly, about three-quarters of them want to make a permanent move to these shores. The strength of the dollar, combined with political uncertainty, has been the key catalyst. Fewer people from Hong Kong are now looking to move to the UK. In 2020, they made up 17% of applicants, with many making use of the new visa programme to relocate. By the first quarter of 2025, this had dropped to 6%.
For people of all nationalities, London remains the favourite destination, 54% of all such applicants sought to purchase in the capital during the first three months of this year. Just 9% would like to buy in London's outer suburbs, with 45% preferring a location in Inner London. A decade ago, these figures were 17% and 30% respectively.
The North has regained its allure for the first time since the start of the pandemic, with 10% of overseas applicants registering to buy in these regions in the first quarter of this year. Back in 2008, just 2% of overseas househunters were looking to purchase a home or buy-to-let in the North of England.
Liverpool is the hotspot, accounting for 49% of applicants in the North of England in the first quarter of 2025. In the first quarter of 2024, 34% of those shopping for a home in Liverpool were in search of an investment property. By the same period of this year, this had declined to 22%, but this is still above the 13% of overseas applicants looking for an investment property nationally.
