Why are overseas investors choosing to buy property in the North rather than London?

London has lost its status as the number one property market in the UK. For overseas investors who want the highest returns, that means looking outside the capital city for the best investments.

The North of England has become the country’s premium buy-to-let market and offers everything that overseas investors want – but what has changed?

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The London property market is shrinking

London was the UK’s best buy-to-let market for a long time, but those days appear to be firmly in the past. The latest date from the Office for National Statistics (ONS) shows the average property value in the capital fell by 3.3% in the year to April 2026. The same data shows that prices have now decreased for seven consecutive months, marking London’s worst period since the COVID-19 pandemic.

Rents in the capital are also lagging behind the rest of the country. In the 12 months to March 2026, rental growth in London was 1.7% - approximately half of the national average over the same time period. It’s also significantly lower than the national rate of inflation, so the monthly income of investors in London property is not keeping up with costs.

Future forecasts show London falling even further behind

Unfortunately for London investors, future forecasts show there is more of the same to come. The latest mainstream residential property outlook from Rightmove shows London is at the very bottom of the list for growth between now and 2030.

The average property value in the capital is anticipated to increase by 13.6% in the next four years. That compares to a national average of 22.2%. Every other region is set to perform more strongly, making London the worst choice for overseas investors who want high capital appreciation.

Likewise, rents in London are forecast to perform below the national average. In this case, growth of 11.5% is expected compared to the average growth of 12% everywhere else. Crucially, London’s rental growth is forecast to remain below the rate of inflation in the next four years, baking in long-term losses for investors who buy London property.

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Northern markets are growing strongly

In contrast, property in the North of England is performing strongly. The Office for National Statistics shows the three best performing regions are all in the North – the North West, the North East and Yorkshire and the Humber. In all cases, average property growth in these areas is at least four times higher than the national average. In the next four years, the advantage held by Northern markets will continue to grow.

House price growth in the North West, the North East, Yorkshire and the Humber will not just be substantially higher than the national average in the four years to 2030. It will be more than twice as high as the predicted growth for London property, according to the Savills and Oxford Economics data. In some cities like Manchester and Liverpool, property growth is likely to be even higher than that. 

Likewise, rental growth will be higher in the North than in London, as mentioned previously. Most importantly of all, it is forecast that rental growth will be higher than inflation, so overseas investors know that their monthly income from UK property is profitable and sustainable when they invest outside London. 

Want to invest in the UK buy-to-let from overseas? Contact us today to discover the UK’s best markets and access premium property investment opportunities in the North.