New research finds growing international demand beyond traditional investor markets
Demand for UK property among international investors is more diverse than commonly perceived, new research from specialist lender RAW Capital Partners suggests.
A survey commissioned by the Guernsey-based lender, involving 300 UK mortgage brokers, found that 35% frequently work with non-UK residents, while 48% do so occasionally. Only 5% reported having no international clients.
The findings indicate a sustained rise in overseas interest, with 60% of brokers observing increased demand over the past five years. Looking ahead, 63% expect demand to either grow or remain steady.
When asked about the regions their international clients come from, brokers most commonly cited Europe and the Middle East/UAE, with 30% having arranged mortgages for investors from each region over the past five years. North America followed at 25%, while 23% reported working with clients from Far East Asia.
Beyond these traditionally dominant regions, the survey highlighted notable activity from other markets. Central America and the Caribbean accounted for 24% of international clients, South America for 25%, and Africa for 16%. Investors from Australia and Oceania made up 20%.
With UK house prices forecast to rise 21.6% over the next five years, the market continues to appeal to overseas investors seeking strong returns. In 2023, international buyers accounted for 24% of all residential transactions in London. Across England and Wales, more than 280,000 properties are registered to foreign owners or entities.
Tim Parkes (pictured), chief executive of RAW Capital Partners, noted that while markets such as the UAE, Hong Kong, and the US are widely recognised as sources of UK property investment, the research shows a broader investor base.
“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 investors from the traditionally dominant markets,” Parkes said.
He added that financial products need to evolve to reflect this changing landscape.
“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.”
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