The UK property market is experiencing demand from a much wider range of international investors than is commonly assumed, new research from RAW Capital Partners has revealed.
The Guernsey-based specialist lender commissioned an independent survey of 300 UK mortgage brokers. It found that a third (35%) of broker frequently work with non-UK resident clients, while 48% do so occasionally. Only 5% said they never have international clients.
The majority (60%) of brokers have noticed an increase in demand from overseas over the past five years, while 63% expect demand to increase or remain stable in the five years to come.
Brokers who have dealt with international clients were then asked to select the regions where their clients have come from. The most common were Europe and the Middle East and UAE – in both instances, 30% of brokers said they have found mortgages for clients from this region over the past five years. This was followed by North America (25%), while 23% have had clients from Far East Asia.
However, while investor demand for UK property coming from the Middle East, Far East and US often attracts the headlines, RAW Capital Partners’ research found there was still significant demand coming from less-talked-about regions. For example, 24% of brokers said they have had clients from Central America and the Caribbean since 2020, while 16% said the same about Africa.
- Europe (30% of brokers who have worked with international clients in the past five years since they have worked with borrowers from this region)
- Middle East and UAE (30%)
- North America (25%)
- South America (25%)
- Central America and Caribbean (24%)
- Far East Asia (23%)
- Australia and Oceania (20%)
- Africa (16%)
Tim Parkes, CEO of RAW Capital Partners, said: “When we think of international investors purchasing UK properties, we often assume the buyers are based in places like the UAE, Hong Kong or the US. However, our research indicates that international demand for UK property investments is actually really diverse.
“The problem is that investors coming from places like Africa or even Eastern Europe are poorly served by the mortgage and specialist finance markets, with many lenders choosing to focus primarily on high-net-worth (HNW) investors from the traditionally dominant markets. This overlooks the fact that there are emerging middle classes in these regions, and these affluent investors are often drawn to the stability and historical strength of UK property as an asset they want in their portfolios.
“For the market to keep pace with the changing nature of the global investment landscape, brokers and lenders must collaborate to broaden their offerings and develop financial products that accommodate a wider range of borrowers. In doing so, they can expand accessibility to not only benefit investors but also drive more meaningful growth in the UK property market in the months and years ahead.”