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AlfredoTurkey said:

Rockstar North is a British development house. They've talked openly about how the 3D GTA titles were always suppose to be social commentary against the US and its way of life. So for them to make a GTA based in EU, or Britain... it would require them to fundamentally change their entire approach. They'd have to embarrass and rip on their own country, culture and way of life. I don't think they'd do that. 

1000 people in Scotland wouldn't want to rip London a new arsehole?

But no, it works better in America.

And now they have Trump material to work with, so you can fully expect it to be set in America. Leave London, or Europe in general, to another game.