UK property market sees growing diversity in international investment, survey reveals

The UK property market is attracting a broader range of international investors than previously recognised, according to a new study by RAW Capital Partners.

The UK property market is attracting a broader range of international investors than previously recognised, according to a new study by RAW Capital Partners.

The survey found that 35% of property brokers regularly work with international clients, while 48% do so occasionally, leaving only 5% who never deal with overseas buyers. This highlights the increasing global appeal of UK property investment.

Over the past five years, 60% of brokers reported a rise in demand from international buyers, and 63% expect this trend to continue or remain stable in the next five years.

While the Middle East, UAE, and Hong Kong have traditionally dominated UK property investment, the study reveals a more diverse investor base.

Europe and the Middle East were the most frequently cited regions for international buyers, each mentioned by 30% of brokers over the past five years. North America followed at 25%, with Far East Asia close behind at 23%.

Despite increased focus on high-net-worth buyers from the Middle East, the Far East, and the US, demand from emerging regions—including Africa and Eastern Europe—remains strong but is often underserved by the UK’s mortgage and finance markets.

Tim Parkes, CEO of RAW Capital Partners, emphasised the need for brokers and lenders to adapt to the evolving investor landscape.

“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,” Parkes said.

“However, our research indicates that international demand for UK property investments is actually really diverse. Investors from Africa and Eastern Europe, for example, are often overlooked, despite the fact that many of them belong to growing middle classes with an interest in UK property.”

Parkes called for greater accessibility to finance options for these emerging investor groups.

“For the market to keep pace with the changing nature of global investment, brokers and lenders must collaborate to develop financial products that accommodate a wider range of borrowers,” he added.

“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.”

With overseas interest in UK property remaining strong, addressing the needs of a more diverse international investor base could help unlock further growth in the sector.