Is now a good time to invest in UK property? A market review for international investors

The UK property market is becoming more selective. Slower house price growth, higher mortgage costs and resilient rental demand are creating opportunities, but investors need to look beyond broad market trends and assess individual properties carefully.

For international buyers, particularly those investing from South Africa, subdued buyer activity may offer greater scope to negotiate. UK property investment can also provide exposure to sterling-denominated assets and diversify wealth across markets and currencies.

However, property values and exchange rates can move in either direction. Financing, taxation and ongoing costs all affect potential returns.

In my experience of more than 20 years across UK and international property markets, successful investment comes down to the fundamentals: location, sustainable rental demand, realistic pricing, manageable financing and a clear exit strategy. These are particularly important for overseas buyers navigating cross-border property ownership.

UK property market: what the latest figures tell us

House prices: slower growth may create room to negotiate

Nationwide reported that UK house prices fell by 0.2% month-on-month in September 2026, with annual growth slowing to 0.8%, down from 1.6% in August. The average property price stood at £274,251.

Rightmove reported a 0.7% monthly increase in new asking prices to £367,440, although they remained 0.8% lower than a year earlier.

The distinction matters. Nationwide's index is based on mortgage lending data, while Rightmove tracks asking prices. Asking prices reflect seller expectations, not necessarily the prices buyers ultimately pay.

What this means for investors

Slower growth may give buyers more negotiating power in some locations. However, investors should assess comparable sales and realistic market values rather than assuming a lower asking price represents good value.

Mortgage costs and buyer activity

The Bank of England maintained Bank Rate at 3.75% in September 2026, although three members of its Monetary Policy Committee favoured an increase to 4%. Mortgage rates also depend on lenders' funding costs and inflation expectations, so an unchanged Bank Rate does not guarantee cheaper borrowing.

For overseas buyers, mortgage eligibility and terms may vary according to residency, income, deposit size, property type and credit profile.

The Royal Institution of Chartered Surveyors (RICS) September 2026 survey recorded net balances of -22% for new buyer enquiries, -18% for agreed sales and -32% for house prices. These figures measure market sentiment, not actual percentage falls in transactions or property values.

Rightmove also reported that the number of homes available for sale had reached a 12-year high.

What this means for investors

Greater property choice may create negotiating opportunities, but affordability remains important. Model mortgage repayments, interest-rate changes, rental income and ongoing expenses before committing.

Rental demand and regional opportunities

Rental demand remains an important consideration for UK property investors. The Office for National Statistics (ONS) reported average UK private rents of £1,400 a month in August 2026, an annual increase of 3.8%. Rents in the North East and North West increased by 5.8%.

RICS recorded a positive net balance of +23% for tenant demand in September, while rental supply remained constrained.

Regional house price performance also varies. Nationwide's third-quarter figures showed annual growth of 3.9% in the North West, compared with 0.4% in London.

Manchester and Birmingham have established employment markets, while Reading benefits from transport connections to London. However, regional growth figures alone do not establish whether an individual property offers good value.

What to assess when comparing locations

• Rental income: Can comparable properties demonstrate sustainable tenant demand?
• Capital growth: What are the area's economic, employment and infrastructure prospects?
• Net returns: What income remains after financing, management, maintenance, service charges and tax?
• Resale potential: Is there likely to be sufficient demand when you want to sell?

UK property developments to consider

The following developments illustrate opportunities in established regional markets. Each should be assessed against its purchase price, rental prospects, ongoing costs and potential resale value.

Reading Riverworks, Reading

Indicative price: £325,000

Developed by Berkeley Group, Reading Riverworks offers access to an established employment market and transport connections to London. Its location and developer profile may appeal to investors seeking longer-term growth potential.

Velocity, Trafford, Greater Manchester

Indicative price: £209,000

Velocity offers access to Manchester city centre and MediaCityUK, with connections to the region's employment market. Its advertised Q3 2028 completion date means investors should also consider the implications of buying off-plan.

30 St Pauls, Birmingham

Indicative price: £249,950

Located in Birmingham's Jewellery Quarter, 30 St Pauls offers access to the city centre and an established residential and commercial area.

Prices, availability and completion dates are subject to change. Confirm the latest details before proceeding. These are illustrative examples, not personalised investment recommendations.

Explore Sable International's UK property portfolio to compare further opportunities.

What South African investors should consider

Buying UK property from South Africa involves financial and tax considerations in both countries. Investors should assess:

• Purchase costs: Deposit, stamp duty, legal fees and other acquisition expenses.
• Financing: Mortgage eligibility, borrowing costs and their impact on rental cash flow.
• Ownership and tax: The implications of personal or alternative ownership structures, UK tax on rental income and gains, and South African tax obligations.
• Exchange control and currency: Applicable South African exchange-control requirements and the effect of rand-to-pound movements on purchase costs, rental income and eventual sale proceeds.
• Management and exit planning: Property management, maintenance, refinancing and eventual resale.

A property that appears attractive in sterling terms may deliver a different outcome once currency movements, financing, taxation and ongoing expenses are considered.

Sable International can help South African investors assess UK property opportunities alongside acquisition support, mortgage options, foreign exchange and cross-border wealth planning

Look beyond the headline rental yield

An advertised rental yield can make a property look attractive, but it doesn't tell you how much income you'll actually take home after costs.

For example, a property offering a 7% gross yield may seem like a better investment than one offering 5.5%. However, once you factor in service charges, management fees, maintenance, financing and periods without tenants, the difference in actual returns may be much smaller.

The same applies to developer discounts and rental guarantees. Before making a decision, compare these incentives with the property's market value, similar properties and realistic rental prospects. An attractive offer doesn't necessarily mean you're getting a good deal.

Is now a good time to invest in UK property?

Slower house price growth and subdued buyer activity may create opportunities for international investors, particularly as some sellers become more open to negotiation. But a quieter market doesn't automatically make a property a good investment.

What matters is whether the individual property stacks up. Consider its location, realistic rental income, financing costs and the full cost of ownership. If you're buying from South Africa, you'll also need to think about currency movements, tax and how the investment fits into your wider financial plans.

Considering a UK property investment?

Whether you're buying your first UK investment property or expanding an existing portfolio, Sable International can help you assess opportunities alongside financing, foreign exchange and cross-border wealth considerations.

Arrange a complimentary UK property consultation to discuss your investment goals and explore your options. Email [email protected] or call +27 (0) 21 657 1535 or +44 (0) 20 7759 7514.