Buyers from North America are playing an increasingly influential role in the UK property market even as overall international demand softens.
New data from Hamptons shows that applicants from the United States and Canada accounted for a record 19% of all overseas-based buyers searching for property in Great Britain in Q1 2026. This is up from 15% a year earlier and more than double their share a decade ago.
The growth comes despite a broader slowdown, with total international registrations falling by 10% year-on-year.
London has emerged as the clear outlier, with overseas demand in the capital rising by 8% over the same period, making it the only UK region to record growth.
WEAKER PRICE GROWTH
As a result, a quarter of all international enquiries are now focused on London, up from 21% a year ago, as buyers are drawn by relative value following a period of weaker price growth.
Average property values in the capital remain below their 2022 peak, with Inner London prices down around 7%, helping to reposition the city as a more attractive entry point for overseas buyers.
North American demand is increasingly focused on living rather than investing, with more than a quarter of applicants targeting London and a growing share entering as first-time buyers.
“Across all international applicants, first-time buyers now account for 23% of demand.”
Across all international applicants, first-time buyers now account for 23% of demand, while investors represent just 12%, reflecting a wider shift in buyer behaviour.
In contrast, demand from Europe has softened over the long term, while Middle Eastern interest has fallen to its lowest level in more than a decade, accounting for just 5% of overseas applicants.
Registrations from the region have been particularly affected by geopolitical uncertainty, with a sharp decline in activity recorded following the outbreak of conflict.
Outside London, international demand has fallen across every region, with the steepest declines seen in Scotland, Wales and the South West.
The changing profile of overseas buyers is also being shaped by higher transaction costs, including stamp duty, which have reduced the appeal of buy-to-let and second-home purchases.
GOOD VALUE
Aneisha Beveridge, Head of Research at Hamptons, says: “While international buyer demand has eased overall, Americans are bucking that trend.
“For many, London is starting to look like relatively good value again, and we’re increasingly seeing people buying with a view to living here, not just investing.
“That shift is most obvious among younger movers. More overseas-based buyers are seeing London as a place to put down roots, including purchasing a first home, rather than a short-term investment.”
UPFRONT COSTS
And she adds: “Elsewhere, 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.
“In the past, strong price growth, especially in London, helped offset those costs. Today, however, with weaker or falling prices across parts of the capital, many international households relocating there are choosing to rent instead.
“But even so, London continues to stand out as a compelling destination, with its culture, lifestyle and world-class education drawing people here for more than just financial reasons.”
