Newly released research from high-net-worth mortgage broker, Enness Global, has revealed the current make up of the international high-end market in the UK and which nations are accounting for the most activity in current market conditions.
Where most market activity is coming from
According to the data, when it comes to the largest number of mortgage deals being secured by international buyers across the top-end of the UK market, the UAE is currently leading the way. The nation accounts for 35% of all deals done by Enness so far in 2020. The USA is the next most prominent nation where current market activity is concerned, accounting for 14% of all deals.
International buyers from Australia (9%), Cyprus (5%), Germany (5%), Saudi Arabia (5%), Singapore (5%) and Switzerland (5%) also account for a large proportion of current market activity within the UK’s top tiers.
Who is purchasing the most expensive homes?
However, when it comes to the average value of the property being purchased, Malaysian buyers are leading the way. So far this year, the average property value for Malaysian buyers obtaining a mortgage via Enness has been £5.1m. The USA again ranks high, with an average purchase value of £3.6m, followed by homebuyers from Cyprus (£3m), Switzerland (£2.4m) and Monaco (£2.25m)
Who is borrowing the most?
No surprise that with the most expensive purchases, Malaysian and American buyers also account for the highest average loan amount, borrowing a total of £3.57m and £2.94m respectively. Swiss buyers are also borrowing some of the highest sums at £1.773m along with Cypriot (£1.635m) and Jordanian buyers (£1.54m).
Who is paying the highest deposit?
American and Malaysians buyers are also stumping up the most cash via a deposit at £1.863m and £1.530m. Cypriot buyers are paying an average deposit of £1.375m, with buyers from Monaco (£1.150m) also placing deposits of over £1m to kick start their purchase.
Hugh Wade-Jones, Managing Director of Enness Global Mortgages, commented:
”Despite the obvious restrictions that have caused additional hurdles for many international buyers so far this year, we’ve seen a pretty diverse range of nations continuing to commit to a purchase at the top-end of the UK market.
"The most activity is currently coming from the UAE, however, in terms of the sums borrowed, the price of homes purchased and the deposits placed, Malaysian and American buyers consistently rank top in the current market.
"International interest has been fairly muted in some respect due to the ongoing theatrics caused by Brexit over the last few years and of course, the more recent problems posed by the current pandemic.
"However, we’ve seen an uplift in demand from the international circuit of late as the domestic market has once again found its feet. Many see the rapidly returning rate of market health at lower price levels as a good indicator that the high-end market is soon to follow.
"As a result, they’re deciding that now is the time to commit and this uplift will soon show where top-line price growth is concerned.”