Demand from high-net-worth buyers to finance property purchases using luxury assets has surged by 260% over the last year as subdued house price growth pushes investors to protect better-performing holdings.

Data from Enness Global shows the number of luxury asset-backed property finance enquiries added to its database climbed by 260% in 2025 compared with 2024. The spike reflects a sharp rise in appetite among wealthy buyers to borrow against existing wealth rather than liquidate investments to fund acquisitions.

The shift comes against a backdrop of muted short-term property growth. Average UK house prices have risen by just 2.5% over the past year, while London values have fallen by 1.2%.

In the US, house prices have effectively stalled, increasing by only 0.1%.

Longer term, however, property continues to show resilience, with UK house prices up 19.6% over five years and US prices rising by 34.3% over the same period.

By contrast, other asset classes have delivered significantly stronger short-term returns. The Nasdaq 100 has climbed 19% year-on-year, the FTSE 100 is up 17.9%, and the S&P 500 has risen 14.9%.

Commodities have outperformed even further, with gold up 66.8%, silver soaring 141.7%, and platinum rising 103.3% over the last year.

Cryptocurrencies, despite volatility, have also delivered strong longer-term gains. Bitcoin has fallen 16.7% over the past year but remains up 137.8% over five years, while Ethereum is down 25.7% year-on-year but up 86.6% over five years.

At the same time, luxury collectables are increasingly being treated as financial instruments. Watches have risen by 52.7% over five years, handbags by 34%, and jewellery by 20.2%, according to luxury investment indices, strengthening their role as collateral in property finance transactions.

FINANCING SHIFT

Islay Robinson (main picture, inset), CEO of Enness Global, said: “Property remains one of the most important cornerstone assets within any high-net-worth portfolio, but what we’re seeing is a fundamental shift in how these purchases are being financed.

“Many of our clients hold significant wealth in assets that have delivered exceptional returns over the last five years, whether that’s equities, commodities, cryptocurrencies, or even luxury collectables and, from a financial perspective, it often makes little sense to liquidate those holdings.”

UNLOCKING LIQUIDITY

He added: “Instead, clients are increasingly choosing to leverage these assets to unlock liquidity, allowing them to acquire property while maintaining exposure to investments that continue to perform strongly.

“This approach allows clients to achieve the best of both worlds. They can secure property, which remains a stable and desirable long-term asset, whilst preserving the broader wealth structures that continue to generate strong returns.

“As global wealth becomes increasingly diversified, luxury asset-backed lending is rapidly becoming one of the most important tools available to high-net-worth property buyers.”