US buyers are becoming more visible, but their impact on mortgage volumes remains limited
North American demand for UK property is building, with recent reports pointing to rising US and Canadian interest in London, but brokers say it is not feeding through into mortgage volumes in a straightforward way.
While some advisers are seeing increased activity, particularly from US-based relocations and expats, much of that interest is either being executed outside traditional lending channels or overshadowed by the continued pressure of domestic affordability constraints.
That tension is becoming more visible at the point where interest converts into transactions, with brokers describing a segment that is active but structurally different from the core UK borrower base.
“We have seen a steady interest from overseas buyers, mainly from the Far East who are seeing some value is UK property prices that have slowed in recent months. They are also benefiting from a weaker GBP,” said Guy Nyirenda, director at Altura Mortgage Finance.
Alongside this broader international activity, he pointed to more targeted movement from the US for either work or lifestyle purposes, a trend echoed across the expat lending space.
Asked about the types of clients coming through, Stuart Marshall, of Liquid Expat Mortgages, said there was a mix. “All of these are showing interest in purchasing in the UK – mainly Americans who have relocated to the UK with work, who are looking to invest in a UK home as opposed to paying rent.”
However, as those clients move beyond initial enquiry, structural friction begins to emerge, particularly around lending, tax and cross-border regulation.
“Although there are challenges lending to US nationals due to the rules the US Government imposes on worldwide reporting of all income etc for US nationals and residents which deters some Private Banks onboarding them as clients,” Nyirenda said.
That complexity is shaping how purchases are ultimately structured, often diverging from traditional UK borrowing patterns.
“For main UK homes, they are purchasing in their personal names, often with a non-American as a joint purchase, i.e. husband and partner. If purchasing investment property, more of purchasing in SPV’s,” Marshall said.
Even where borrowing is involved, it is increasingly specialist. Nyirenda said parts of the market are beginning to adapt, with more building societies opening their books to overseas nationals and expats.
“As more lenders come into the market this has led to more competitive terms being offered and greater choice for this sector which is positive for new and existing borrowers,” he said.
Underlying property market conditions are also drawing overseas buyers back into consideration.
“As specific parts of London and greater London are having asking prices being reduced as the market is very soft compared to the last decade, this is enticing more US and Canadians to purchase when they have either been put off with intense demand and or the prices are becoming more affordable,” Marshall said.
Beyond London, similar dynamics are emerging in lifestyle markets, although the impact remains concentrated rather than widespread.
“We’re absolutely seeing more enquiries from U.S. buyers,” said Michelle Niziol, of IMS Property Group. “It’s a clear uplift, particularly at the prime end of the market. Where buyers once sought lock-up-and-leave boltholes, a growing proportion are now making permanent moves, bringing families, enrolling children in local schools and putting down roots.”
However, she cautioned that this does not represent a broad shift across the housing market.
“This remains a concentrated trend rather than a mass shift. Demand is largely focused at the top end of the market and often among cash or low-leverage buyers.”
That concentration, and the prevalence of cash, helps explain why increased international interest is not translating into a meaningful uplift in mortgage activity.
“We’re not currently experiencing any notable increase in demand from US buyers in the London market,” said Louis Mason, of Oportfolio.
“The majority of our enquiries are still, for the most part, from UK-based first-time buyers and home-movers trying to get round higher mortgage rates and tighter affordability.”
Where overseas buyers are active, he added, their behaviour often limits their interaction with the mortgage market. As a result, the underlying shape of the mortgage market remains largely unchanged.
“At the moment, the dominant theme continues to be affordability. Higher borrowing costs are shaping demand far more than any incremental overseas interest, and that’s where we’re seeing the real pressure in terms of getting cases over the line.”
Taken together, broker commentary points to a market where global interest is becoming more visible, but not more impactful from a lending perspective.
“In a more uncertain global environment, we’re seeing property used as a form of lifestyle diversification,” Niziol said.
For now, that activity is building around the edges of the mortgage market rather than within it, leaving affordability as the defining constraint even as international interest begins to re-emerge.
