International demand for UK property investment 'more diverse than expected'

The UK property market is attracting investment from a much broader range of international buyers than commonly assumed, according to new research from RAW Capital Partners.

The Guernsey-based specialist lender commissioned an independent survey of 300 UK mortgage brokers, which found that 35% of brokers regularly work with non-UK resident clients, while 48% do so occasionally. Only 5% said they never handle international clients.

The lender says its research highlights a growing global appetite for UK property, with 60% of brokers reporting an increase in international demand over the past five years. Looking ahead, 63% expect demand to either grow or remain stable in the next five years.

INVESTOR DEMAND EXTENDS BEYOND TRADITIONAL MARKETS

While buyers from the Middle East, UAE, Far East Asia, and the US often make headlines, the study found significant demand from less widely discussed regions.

The most common locations for international buyers over the past five years were:

Europe (30%)
Middle East & UAE (30%)
North America (25%)
South America (25%)
Central America & Caribbean (24%)
Far East Asia (23%)
Australia & 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.”