International buyers continue to play a central role in the UK property market. With foreign ownership of homes in England and Wales reaching nearly 189,800 in 2024 - a 2.6% year-on-year increase - the market remains attractive to investors looking for stability, growth, and yield.

But what’s changing is where overseas investors are directing their attention. While London has long been the first choice, secondary cities are emerging as prime hotspots, offering high rental yields, growing economies, and affordable entry points compared to the capital.

Here’s a closer look at how global investors are reshaping UK property ownership and why cities like Manchester, Liverpool, and Birmingham are becoming increasingly attractive.

Who Are the Key Overseas Buyers?

According to recent data, the largest groups of international buyers include:

• Hong Kong: ~25,972 homes (13.7%)

• Singapore: ~15,635 homes (8.2%)

• United States: ~12,405 homes (6.5%)

• UAE & China: strong and consistent demand

One notable trend is that individual buyers now outnumber corporate owners in the UK property market. This shift indicates that global families and private investors - not just large institutions - are fueling demand for rental properties and buy-to-let opportunities.

Why Investors Are Looking Beyond London

London remains a global hub, but affordability challenges and compressed rental yields are prompting many investors to look elsewhere. Secondary markets are showing stronger performance in both rental demand and returns:

• Manchester: A thriving business hub with strong population growth. Rental yields often range between 6–7%, significantly higher than most London boroughs.

• Liverpool: Regeneration projects and a booming student population are driving yields as high as 7–8% in some areas.

• Birmingham: With HS2 (High Speed Rail) development and continued investment, Birmingham offers both capital growth and rental potential.

• Leeds & Sheffield: Northern Powerhouse cities with growing demand for affordable housing, attracting younger renters and professionals.

By diversifying into these markets, overseas investors can capture higher returns while still benefiting from the UK’s reputation as a safe and transparent property market.

The Appeal of UK Property for International Buyers

Several factors explain why the UK continues to be a magnet for overseas capital:

1. Stable Legal Framework: A well-established property law system that protects ownership rights.

2. Strong Rental Demand: A growing population and limited housing supply keep demand high.

3. Currency Advantage: For dollar- and Hong Kong dollar-based investors, exchange rates have often worked in their favor.

4. Educational & Lifestyle Appeal: Many buyers purchase properties for children studying in the UK, later converting them into rental investments.

Opportunities for Investors in 2025 and Beyond

The continued rise of international property ownership highlights several opportunities:

• High-Yield Cities: Regional markets like Manchester, Liverpool, and Birmingham now compete with London as serious investment hubs.

• Diversified Portfolios: Many overseas investors are spreading investments across multiple UK cities to balance yield and long-term growth.

• Individual Ownership: The trend of families and private investors directly purchasing property opens up new dynamics compared to corporate landlords.

Conclusion

The UK property market is evolving. While London will always be a prime destination, secondary cities are becoming the real engines of rental yield and growth for overseas buyers. With more than 189,000 UK homes now held by international owners, the trend is set to continue.

At LendAbroad, we help overseas investors navigate the UK market—whether you’re exploring buy-to-let opportunities in London or looking north to cities like Manchester and Liverpool. Our team provides tailored advice, financing solutions, and local expertise to make your investment journey seamless.

For more insights or assistance, reach out at hello@lendabroad.com