Overseas appetite for UK property has strengthened and diversified over the past five years with demand now coming from every continent, research from Butterfield Mortgages reveals.
The findings point to sustained international interest in the UK market despite tax changes, higher borrowing costs and geopolitical uncertainty.
In a survey of 300 UK-based mortgage brokers, 77% said demand from non-UK residents has increased over the past five years.
The breadth of origin markets stood out: brokers most commonly cited clients from Australia and Oceania (49%), ahead of Central America and the Caribbean (45%), Europe (39%) and Africa (36%). A further 32% reported activity from Far East Asia, 25% from North America and 4% from South America.
STABLE ASSET CLASS
The figures highlight the continued attraction of UK real estate as a stable asset class, particularly at the prime end of the market, where currency movements and long-term capital preservation often play a significant role in purchasing decisions.
They also highlight growing complexity for brokers and lenders dealing with cross-border clients subject to differing regulatory and tax regimes.
Butterfield Mortgages, which specialises in prime London lending, said the findings challenge suggestions that recent policy changes had dampened international demand. Instead, they suggest inquiries have both widened geographically and remained resilient in volume.
DIVERSE INTEREST
Alpa Bhakta (main picture, inset), CEO of Butterfield Mortgages Limited in the UK, said: “Our data shows that UK property continues to attract a truly global range of investors. Following months of speculation about the appeal falling away due to tax changes, it’s clear that the resilience of bricks and mortar remains.
“To see Australia and Oceania cited as the region generating the most demand was surprising but underlines just how diverse the interest now is. As a result, brokers are navigating an increasingly wide range of client needs and market complexities.
“That’s where lenders have a vital role to play. Providing clear communication, flexible lending solutions and the right specialist expertise can make all the difference in helping brokers support their clients and ensuring international buyers can access the finance they need.”
