But it's not as easy as it seems…
Many UK mortgage brokers see international clients as a growth opportunity, but finding suitable lenders and navigating government policies remain significant challenges, according to new research from RAW Capital Partners.
The Guernsey-based specialist lender commissioned an independent survey of 300 UK mortgage brokers. While only 35% said they frequently work with non-UK resident buyers, 62% are looking to expand their overseas client base.
Demand from international buyers has increased in recent years, with 60% of brokers reporting higher interest from non-UK clients over the past five years. Looking ahead, 63% expect this demand to remain steady or grow.
However, brokers also highlighted key barriers when securing mortgages for international buyers. Two-thirds (66%) said that policy changes introduced since the Labour government took office have made it more challenging for overseas clients to navigate stamp duty reforms and private rental sector regulations.
Limited lending options also pose a challenge. According to the lender’s report, 62% of brokers believe there are too few lenders willing or able to serve non-UK buyers.
“The demand for UK property from overseas investors remains perennially high, and brokers are clearly responding to this by actively seeking out ways to grow their client base internationally,” said Tim Parkes (pictured), chief executive of RAW Capital Partners.
“Indeed, with economic turbulence commonplace across many countries around the world, we’ve seen investors shifting focus to the UK to reap the benefits of its historically strong, stable and resilient property market.”
Parkes also pointed to challenges in securing financing, as many mainstream lenders hesitate to work with international buyers due to additional due diligence requirements.
“Now, with many brokers expecting interest from international buyers to rise in the coming years, it is more important than ever that the specialist finance sector fills this gap,” he added.
A separate study by estate agency Benham and Reeves found that 189,793 properties in England and Wales are owned by overseas buyers, indicating steady international demand.
Hong Kong investors lead foreign ownership, holding 25,972 properties - a 5.7% annual increase - representing 13.7% of all foreign-owned homes. Singapore follows with 15,635 properties (8.2%), while US buyers rank third with 12,405 properties, reflecting a 5.5% rise year over year. The UAE (5.8%) and China (5.2%) round out the top five, with China recording the largest annual increase among the top 20 countries at 12.9%.
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