The rise of the London Townhouse – Why Malaysian families are switching from apartments to houses in 2026

For ages, the “London Dream” for Malaysian investors and families was all about the glass-and-steel skyscrapers of Nine Elms or the sleek apartments of Canary Wharf. High-rise living felt familiar or replicated the same, with residing in homes in Mont Kiara or KLCC.

However, as we move through 2026, you can see a significant change! The Malaysian taste for UK real estate has evolved. While many find the flat-like setup convenient, a majority of the Malaysian buyers are now looking for something permanent, more private and more “British-like”.

The spotlight has now shifted towards the London new-build townhouse.

Beyond the Condo: The reason to buy a Townhouse

In Malaysia, a “townhouse” is usually defined as a single building divided into two homes, often sharing an entrance or driveway. But in London, the picture is quite different. A townhouse is a stylish, multi-storey home where each family gets the entire property, even though the houses are connected side by side.

As a Malaysian buyer, if you’re wondering whether a townhouse counts as landed property in the UK, the answer is yes! When you buy a townhouse in London, you’ll typically own the land it stands on, either as a freehold or through a very strong lease. This puts you in a stronger state of ownership and long-term security compared to owning an apartment in a high-rise building.

The Space Race: From “limited” to “large”

Many reports suggest that space is the major reason behind this shift! After years of compact city living, Malaysian families are in search of bigger homes that can comfortably accommodate multiple generations.

A townhouse makes this possible with a smart “zoning” layout. The ground floor can be used for dining and entertaining guests, the middle floors for living areas and bedrooms, and the top floor for kids’ rooms or even a home office.

This kind of vertical layout offers you way more privacy. Unlike apartments, where spaces are shared, and noise travels pretty easily, townhouses give you a setup where you get access to separation and peace. No more dealing with footsteps from upstairs neighbours or the continuous noise of lifts and shared spaces.

Capital growth: A smart long-term move

If your priority is quick rental income, Apartments are a great option; on the other hand, if long-term value attracts you, townhouses often come out on top!

In 2026, land in London, especially in Zones 2 and 3, will become harder to find. This makes townhouses, which come with land, much more valuable over time.

Malaysian investors are starting to see this clearly. While new apartments can keep going up, the number of townhouses will always be limited. And when something is limited, its value usually spikes up! The reason why townhouses are considered to be a safer, more stable investment is that they are especially beneficial in times of global inflation.

A touch of Green living: For a sustainable future

One thing many Malaysian families miss in London apartments is outdoor space! But fortunately, Townhouses solve this beautifully. Most come with a private garden or even a rooftop terrace! It could be a small space for plants, a relaxing corner or a safe area for kids to play without needing to go to a public park.

After the pandemic, the scenarios have completely changed! Having your own outdoor space is no longer just a bonus; it’s something that many families now consider an important factor.

2026 Edition: Best areas to buy a Townhouse in London

If you’re right on the edge about making the move, here are some popular areas that you can consider:

• Royal Victoria Deck: Perfect for families looking for modern homes with a scenic and waterside ambience.
• Chiswick & Richmond: Ideal for families, known for excellent schools and green surroundings
• Greenwich Millennium Village: A great option for those who value sustainability and a strong sense of community

Malaysia vs London: Where should you invest

Malaysia’s property market can still be a solid and stable option, but London offers something out of the box- global exposure, strong currency benefits and access to world-class education.

This is the reason a major chunk of Malaysian buyers are not choosing one over the other; they’re doing a mix of both! And honestly, that’s indeed a strategic move! Keeping property in Malaysia while buying a Townhouse in London gives them a base for their children studying overseas and a foothold in an international market.

Moving to a townhouse is a big step, and Benham and Reeves makes it an easy experience! With deep expertise in London’s property market, we help Malaysian buyers find the ideal home, choose the best locations, and secure long-term investments.

From buying to property management, our end-to-end support ensures a smooth, hassle-free experience, so you focus on settling into your new lifestyle with comfort and confidence!

Contact our Malaysia team today