The proportion of international applicants registering to buy a home in the UK fell to 1.0% in the first quarter of 2025, the lowest level on record, according to Hamptons’ International Applicant Index.
In prime central London, overseas applicants made up 2.9% of house hunters, compared with a peak of 7.9% in 2009.
Hamptons reported that the decline in demand had been predominantly driven by fewer Europeans relocating to Great Britain.
Europeans accounted for 43% of overseas house hunters in the first quarter of 2025, down from 48% in 2008.
Prospective buyers from North America were increasingly replacing Europeans, making up 16% of international house hunters, more than double the 6% recorded in 2008.
Nearly three-quarters of these North American applicants were looking to make a permanent move.
Demand from Middle Eastern buyers had risen, making up 14% of all international applicants, compared with 8% in 2008.
Meanwhile, the number of applicants from Hong Kong had declined sharply from a peak of 17% in 2020 to 2% in the first quarter of 2025, the lowest proportion on record.
At a country level, Americans and Canadians made up the largest single international buyer group, overtaking the French and, more recently, Hong Kongers.
The United States and Canada were the top source of international applicants, followed by France and Oman.
London remained the primary focus for overseas house hunters, with 54% of international applicants looking to buy in the capital.
The report found that there had been renewed interest in Inner London, where 45% of applicants registered to buy a home, up from 33% a decade ago.
Interest in the North of England had also increased, with one in 10 international applicants seeking property there, double the proportion from 2015.
Liverpool attracted 49% of all international applicants looking to buy in the North, with Europeans accounting for around two-thirds of this interest.
Overseas applicants were increasingly seeking permanent residences rather than holiday homes or investment properties.
The proportion of international applicants seeking a second home or a buy-to-let property fell by over a third in the past five years, from 30% in 2019 to 19% in the first quarter of 2025.
Hamptons attributed this to higher Stamp Duty costs and changes to the non-dom tax classification.
The report stated that overseas nationals now paid a 7% surcharge on second home purchases in England, bringing the effective tax rate for a £1m second home to over 11%.
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.”
She said: “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 PCL, have led many to opt for renting instead.
“That said, access to all the amenities and culture that London offers, combined with the country’s robust legal system, continues to attract money from overseas from those looking to buy.”
Beveridge added: “While Europeans used to be the driving force, with many relocating here for job purposes, Brexit has put a pause to that.
“They have been increasingly replaced by Americans, spurred by the strength of the dollar and potentially influenced by political events at home.
“A home in the UK that would have cost someone buying in dollars £1m a decade ago, effectively costs them around £825,000 today due to currency changes alone.
“In most cases, this would offset the rise in Stamp Duty.”
