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That could be entirely normal as that's how some games download and unpack.
Many games do this process of downloading a chunk, then it'll hold the download, unpack and do all the swapping and decompressing, etc, write it, then go back to downloading.
As for download regions, you shouldn't be having issues with Manchester or London as your regions. They're not overburdened atm.
you still have disk usage, and that disk usage might seem low, but it probably nukes your entire drive out of the park, and that is why there is no reason to download anything while your drive is busy.
Did you not see your disk drive being used? You're probably downloading faster than your HDD can process data. This is very common on steam.