The share of foreign capital accounted for 3.6 billion pounds. Experts attribute the slowdown to global economic uncertainty, the weakening of the US dollar, and investor concerns about the viability of development projects. The stronger pound sterling against the dollar has also reduced the price attractiveness of British assets for foreign buyers.
The United States remained the largest foreign investor in British real estate: by the end of 2025, American investments reached 18.2 billion pounds. However, in the first quarter of 2026, the inflow of funds from the United States dropped significantly compared to the record of the previous year. European capital, on the contrary, was active in 2025. French investors invested more than 1 billion pounds, while Norwegian, Swedish and Japanese players also remained prominent market participants.
Analysts emphasize that it is critically important to attract long-term capital into real estate to support the UK's economic growth. However, current data points to the formation of a more cautious investment environment, especially against the background of a stronger pound and global instability.
Source: Estate Agent Today
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