The number of UK residential properties sold by overseas individuals saw a decline of almost 9% in the latest tax year, according to HMRC figures obtained by Bowmore Wealth Group. Non-resident individuals sold 16,520 homes in the year to 5 April 2026, a decrease from 18,100 in the preceding 12 months.
Activity also reduced at the higher end of the market, with 70 non-residents selling properties valued over £5 million, compared to 80 a year earlier.
Bowmore suggests these figures indicate a slowing pace in the disposal of UK residential property by overseas owners, following a period of adjustment to tax and regulatory changes. The abolition of the non-domiciled tax regime, announced in the Autumn Budget of 2024, was expected to prompt some wealthy overseas owners to re-evaluate their UK property holdings.
Other factors cited by Bowmore include the tax treatment of buy-to-let property and reforms introduced through the Renters’ Rights Act. From 2027, income tax rates on property income are set to increase by two percentage points, and individual landlords cannot deduct full mortgage interest costs from rental income before tax calculation.
David Floyd, head of private clients at Bowmore Financial Planning, commented that residential property as an asset class is facing several challenges. He noted that the Renters’ Rights Act has added an extra layer of uncertainty for landlords.