Overseas individuals sold fewer UK residential properties in the year to 5 April 2026 than the year before, according to research by Bowmore Wealth Group using HMRC data. Overseas owners disposed of 16,520 properties, down from 18,100 the previous year. Sales of properties worth more than £5 million by overseas owners also fell, from 80 to 70.
Bowmore said the earlier surge in disposals may have followed the abolition of non-domicile tax status announced in the Autumn Budget 2024, but the pace of selling has since eased. The firm pointed to a broader run of changes weighing on UK residential property as an investment class: from 2027, income tax on property investors rises by two percentage points; landlords are already barred from offsetting mortgage interest against rental income; and the Renters’ Rights Act has tightened rules on ending tenancies and raising rents. Separately, Bowmore cited Adam Smith Institute data showing the number of UK residents with net worth above £1 million has fallen 7% since 2024, its lowest level since the 2008 financial crisis.
David Floyd, head of private clients at Bowmore Financial Planning, said UK and overseas owners are going through “a period of readjustment,” with investors shifting toward equities or short-term bonds. He noted London net rental yields of around 2%, against a risk-free 4.6% on five-year UK government bonds, and pointed to the added administrative burden the Renters’ Rights Act has placed on landlords.
References
Mortgage Introducer – Overseas property sales slow as tax changes reshape UK residential market / The Intermediary – Overseas owners slow sales of UK property amid tax changes, research finds
