RAW Capital Partners commissioned an independent survey of 300 mortgage brokers in the UK and found that more than a third – 35% – frequently worked with non-UK resident clients.
Some 48% had these clients occasionally, while 5% never saw international clients.
Some 60% of respondents said there had been an increase in demand from clients overseas in the last five years, while 63% expected this interest to grow or remain stable in the next five years.
Of the brokers who have worked with international clients, the most common regions for this business were Europe and the Middle East and UAE, with 30% of brokers noting interest from each region respectively.
A quarter of brokers said they obtained mortgages for clients from North America and 23% had clients from Far East Asia.
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RAW Capital Partners said while international investment was usually expected from the Middle East, Far East and the US, brokers were seeing notable demand from other parts of the world.
Some 24% of brokers said they had clients from Central America and the Caribbean, while 16% said the same about Africa.
A fifth reported having clients from Australia and Oceania, while a quarter saw business from South America.
Emerging investors
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.”
He added: “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.”
