Featured by Estates Gazette, IFA Magazine, Property Soup and Mortgage Introducer, HM Revenue and Customs data obtained by Bowmore Wealth Group reveals that overseas individuals sold significantly fewer UK homes during the latest tax year, with 16,520 transactions completed by non-resident individuals in the year to 5 April 2026, down from 18,100 the previous year.
Notably, at the premium end of the market, just 70 non-residents completed sales of properties valued above £5 million, compared with 80 in the preceding year.
Several factors may be driving the shift. The abolition of the non-domiciled tax regime in the Autumn Budget of 2024 had been expected to prompt wealthy overseas owners to reassess their UK holdings. Increased taxation on buy-to-let investment, restrictions on mortgage interest deductions and the reforms introduced under the Renters' Rights Act have added further pressure on the appeal of residential property as an investment.
David Floyd, Head of Private Clients at Bowmore Financial Planning, said, "It appears to be a period of readjustment for UK and overseas owners of UK property. Residential property, as an asset class, is having to face a number of challenges."
David added, "The administrative burden of being a landlord, as opposed to being a stock market investor, has always been quite onerous and the new Renters' Rights Act has added an extra level of uncertainty into being a landlord."
For property investors weighing up their options, understanding how the landscape is shifting may be an important part of longer-term financial planning
Estates Gazette: Overseas sales of UK residential property fall 9%
IFA Magazine: Sales of prime residential properties in the UK by non-residents slows down
Property Soup: Overseas sales of UK homes fall 9%
Mortgage Introducer: Overseas property sales slow as tax changes reshape UK residential market
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