"More than anything, right now we need clarity. If the Budget can deliver that, property buyers will be able to make informed decisions and plan with confidence"
- Alpa Bhakta - Butterfield Mortgages Limited
International investors are approaching the UK property market more carefully as recent political and economic developments shape buyer sentiment, according to new research from UK mortgage brokers.
Butterfield in the UK commissioned Censuswide to survey 300 UK-based mortgage brokers. Seven in ten brokers (71%) reported that their overseas clients are acting more cautiously ahead of the Autumn Budget, while 73% commented that recent tax changes have reduced the attractiveness of UK property for international buyers.
The findings also indicate that three in four brokers (75%) believe overseas clients now require additional guidance to understand the UK property landscape since Labour formed a government in July 2024. In addition, the Bank of England’s base rate remains a significant influence on investor decisions, according to 67% of respondents.
Collectively, the survey suggests that political and economic uncertainty is shaping market attitudes. However, almost three-quarters of brokers (74%) stated that proposals to simplify the home-buying process could have a positive impact on the market if adopted by the government.
Commenting on the figures, Alpa Bhakta, CEO of Butterfield Mortgages Limited, said, “With the Autumn Budget drawing close, this data underlines what's at stake, with policy reforms clearly influencing how international investors think about UK property, particularly in prime markets, where the higher concentration of overseas buyers means the impact is most obvious.”
Bhakta continued, “More than anything, right now we need clarity. If the Budget can deliver that, property buyers will be able to make informed decisions and plan with confidence. To support this, brokers and lenders have a crucial role to play after the Budget. By maintaining clear communication and a flexible approach, lenders can help ensure that international buyers continue to see the UK as a stable and attractive market for investment.”
