The Intermediary – January 2026 - Flipbook - Page 42
SPECIALIST FINANCE
Opinion
UK property
remains a magnet
for global investors
F
or all the turbulence the
UK property market has
faced in recent years, one
thing has remained, for
the most part, the same:
global investors continue
to look to the UK for bricks-andmortar investment opportunities.
According to a recent survey we ran
among 300 UK mortgage brokers, 93%
of mortgage brokers have worked with
non-UK resident borrowers in the past
five years.
Yet only 2% say sourcing mortgages
for these clients is “not challenging
at all,” while the remaining 98%
describe it as anywhere from slightly
to extremely challenging.
In other words, the demand is not
the problem, even if the market has
slowed somewhat since the end of the
non-dom tax regime.
The challenge lies in converting that
demand into completed transactions
– something that requires brokers
and lenders to work together to
navigate the complexities of non-UK
resident finance.
Unless the market can respond with
beer-aligned products, support and
expertise across brokers and lenders,
the UK might risk losing a valuable
pool of buyer demand – especially
in the Prime Central London (PCL)
market, in which global investors are
particularly active.
The continued appeal
of UK property
In spite of shis in political leadership,
tax policy, and global economic
conditions, the UK remains a powerful
draw for overseas buyers.
More than three-quarters of brokers
(77%) say demand from non-UK
residents has increased in the past five
years.
This diverse range of investors
40
The Intermediary | January 2026
shows that the appeal of UK property
is known around the world, and that’s
largely down to some key advantages.
For example, the UK education
system remains world-renowned and
continues to aract families seeking
long-term residency or investment
near major universities.
What’s more, the legal system is
viewed as robust and predictable,
while cities like London retain
their appeal as global financial and
cultural centres.
As such, for many investors, the
UK appears to be a relative haven of
stability despite recent policy shis.
Yet the fact that international
demand persists – and is in many cases
rising – suggests that the UK’s core
appeal remains intact.
.
Opportunities for
specialist finance
What’s clear from the data is that the
complex financial profiles of overseas
buyers – whether that’s income from
multiple jurisdictions, assets held
in overseas structures or irregular
income flows – cause mainstream
lenders to step back from these type
of cases.
This creates a service gap that
specialist lenders can fill, as it means
that brokers require access to flexible,
bespoke mortgage solutions to help
them convert client interests into
converted deals.
But as complexity deepens, it’s
important to remember that education
and communication are now just as
important as product availability.
Clients are increasingly navigating
an ever-growing list of cross-border
tax changes, currency movements and
shiing regulations.
Therefore, lenders who can help
brokers provide clarity, responsiveness
and proactive updates can contribute
ALPA BHAKTA
is CEO at Butterfield Mortgages
to maintaining investor confidence
and, ultimately, demand.
These issues are particularly
pronounced in the Prime Central
London (PCL) market, where
international buyers remain a key
demographic.
It means that, for brokers operating
in this space, ensuring that they have
the right tools at their disposal will be
essential in helping the market find its
feet again aer months of uncertainty.
Final thoughts
Encouragingly, transaction data
indicates that this is already
happening – Knight Frank recently
reported that clarity following the
Autumn Budget caused exchanges
across the PCL sector to rise around 5%
higher than the five-year average.
However, with the implementation
of some recent tax changes still to
come in the next couple of years,
lenders and brokers must work
closely together to provide the
necessary support that international
buyers need.
As we look ahead, the fundamentals
that underpin the UK’s global appeal
remain firmly in place.
With inflation easing, interest rates
expected to fall and greater political
clarity beginning to filter through,
there is every reason to believe that
international demand will continue to
strengthen.
If lenders and brokers can combine
their expertise, the market, and
particularly PCL, will be well
positioned to turn renewed confidence
into meaningful activity in the
year ahead. ●
