Recent policy shifts and economic uncertainty are making international investors more cautious about UK property, UK brokers say.
A survey commissioned by Butterfield UK and conducted by Censuswide of 300 UK-based mortgage brokers found that 71% have noticed overseas clients holding back ahead of the Autumn Budget. Meanwhile, 73% of brokers believe recent tax changes have made UK property less attractive to foreign buyers.
The data also shows that three in four brokers (75%) say their clients now need more support to understand the UK market since Labour came to power in July 2024. Meanwhile, the Bank of England’s base rate continues to be a significant factor in investors’ decision making according to 67% of brokers.
It suggests that uncertainty across the political and economic landscape are having a dampening effect on market sentiment. That said, nearly three-quarters (74%) believe that proposals to streamline the home-buying process will have a positive impact on the market if they are introduced by the government.
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.
“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.”
Read the orginal article: https://propertyindustryeye.com/overseas-buyers-hold-back-amid-economic-and-political-uncertainty/?utm_source=rss&utm_medium=rss&utm_campaign=overseas-buyers-hold-back-amid-economic-and-political-uncertainty
