The number of UK properties owned by overseas investors has fallen dramatically since 2015 as the impact of Brexit and increased regulation dampen appetite.
While the value of property assets held by overseas companies is at an all-time high – jumping 40 per cent, or £38.5bn, in three years – the volume of purchases has dramatically slowed, according to analysis by Search Acumen.
In 2024, 3,171 properties were registered – just over half the number registered in 2019.
Andrew Lloyd, director at Search Acumen, said the size of property wealth currently under ownership by overseas companies is “eye watering”, but he said that the decline in ownership tells us “one of two things” about the UK’s economy.
“Either investors and the wealthy are buying assets and storing capital outside the UK, which is a troubling sign that our global appeal may be in decline, or our property transaction system is becoming more stringent.”
Measures to increase transparency have strengthened in the last few years, with anti-money laundering regulation like the Register of Overseas Entities in recent years designed to deter illicit purchases.
“The likely answer is a bit of both,” he added. “We know that the UK’s exit from the EU had huge economic consequences… new taxes and rules for overseas investment has played a critical role in the decline since 2022, seen as a less attractive place post-Brexit”.
He added that “reduced anonymity” after the register was introduced may have “deterred some purchases”.
“This, combined with rising interest rates, higher borrowing costs, falling yields and slow capital growth, has likely made speculative investment less rewarding.”
In terms of geography, Jersey overtook the British Virgin Islands as the top country to hold UK wealth through overseas companies, holding £57bn worth of UK property assets.
This equates to a significant 25 per cent of all properties registered under overseas company ownership, followed by the British Virgin Islands at 21 per cent, Guernsey at 13 per cent and the Isle of Man at 11 per cent.