The Labour government has made boosting economic growth its central mission, working to position the UK as a top destination for global investment. In the property market, however, little encouragement is needed – after all, it is estimated that 200,000 properties in the UK are already owned by foreign buyers.
Typically, this demand is perceived to come from a few concentrated regions, such as the Middle East or East Asia. However, a quieter but powerful shift is underway, and there is a growing force in the property investment landscape: the emerging global middle class.
But where is this new wave of demand coming from, why does the UK appeal to these investors, and how can RAW Capital Partners help them address the challenges that they face when accessing finance in the UK?
Let us explain…
A growing global investor base
We recently surveyed 300 UK mortgage brokers to understand where international demand has been coming from over the past five years. The results reveal a far more geographically diverse investor base than many might assume.
While traditional strongholds like Europe, the Middle East and UAE remain key sources of investment (30% of UK brokers say they have worked with clients from these regions in the past five years), significant demand is also emerging from North America (25%), South America (25%), and Central America and the Caribbean (24%) – surprisingly, just 23% of brokers reported working with clients from East Asia.
What’s more, regions often overlooked in discussions around UK property investment – such as Australia and Oceania (20%) and Africa (16%) – are clearly also playing a growing role in brokers’ businesses.
Indeed, the fact that one in six brokers are now working with clients from Africa aligns with a trend that our team has observed in recent years: as emerging economies experience rapid growth – Africa, for example, will be the second-fastest-growing region globally this year – the emerging middle classes within some African countries are turning to the UK property sector as an investment destination.
The UK’s appeal as a property investment destination
Why is this the case? Well, on top of the potential for capital growth and rental yields that buy-to-let (BTL) assets can provide, the UK is a famously desirable place to work, live and visit.
Indeed, the UK has been a draw for overseas buyers for the following reasons:
- Its historical appeal
- Its transparent legal framework
- Its stable political system
- The quality of its educational institutions
- A strong sense of security
Furthermore, in spite of the periods of economic turbulence the UK has faced in recent years, it remains one of the world’s most resilient and reliable markets, further reinforcing its attractiveness as an investment destination.
For example, the latest ONS data shows that the average price of a property grew by 4.9% in the year to January 2025 to reach £269,000 – almost £100,000 higher than the average price a decade ago (£176,000 in December 2014). Meanwhile, between 2013/2014 and 2023/2024 average rental prices rose from £176 to £237 per week – a 34% increase.
Considering the challenges of this period – Brexit, the pandemic, the cost-of-living crisis, and various economic and political uncertainties – such growth is remarkable. With the economic climate improving, the prospects for further expansion look promising.
It’s no surprise, then, that investors around the world continue to view the UK as a prime place to make property investments.
Brokers need help to manage the needs of the emerging global middle class
Despite the significant demand coming from overseas investors, however, 62% of UK mortgage brokers reported that too few lenders cater to non-UK borrowers, mainly because mainstream lenders are hesitant to finance international clients due to issues like the absence of a UK credit score or verifiable income history.
Moreover, 66% of brokers report that borrowers require more guidance on changes in recent tax and regulatory changes, such as higher Stamp Duty surcharges, and stricter Energy Performance Certificate (EPC) requirements. These shifts, combined with the Renters' Rights Bill and the uncertain nature of non-dom status reforms, are creating additional challenges for brokers and their overseas clients.
How RAW Capital Partners is supporting the emerging middle class
As such, it’s more important than ever that, with brokers experiencing higher levels of demand from a diverse range of international clients, lenders are able to adapt their offerings to provide the finance and support those global investors need to act with confidence.
Fortunately, RAW Capital Partners is here to do just that. From the very first day that we were founded, we have ditched a tick-box approach to lending, instead treating applications on a case-by-case basis.
This means that we take a borrower’s entire financial situation into account by carrying out extra due diligence and Know Your Client (KYC) processes, which allows us to lend to people with unconventional financial profiles, including expats and non-UK resident buyers.
As a result, we have provided loans to borrowers from over 50 countries, with a strong record in supporting borrowers to Asia and Africa.
With the market heating up, and demand from abroad continuing to grow, we’re committed to maintaining this support to brokers and borrowers. Our expert team is on hand to provide timely, bespoke guidance that will help brokers stay ahead of the challenges they face in the non-UK resident market.
To discuss how we can support your next case, get in touch with us today: https://rawcapitalpartners.com/