Seven in 10 (71%) mortgage brokers have reported “greater caution” among their overseas clients in anticipation of the upcoming Budget, a new study by Butterfield Mortgages has shown.

A similar number (73%) suggested that recent tax changes have reduced the appeal of UK property.

Butterfield commissioned market research firm Censuswide to conduct an independent survey of 300 UK-based mortgage brokers, and the group found that recent policy changes and economic shifts are having an impact on international property investors looking at UK-based assets.

The data showed that quarters of brokers (75%) said 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 has continued to be a significant factor in investors’ decision making, as cited by 67% of brokers.

Butterfield said the findings suggest that uncertainty across the political and economic landscape are having a dampening effect on market sentiment.

“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,” Butterfield CEO, Alpa Bhakta, commented.

“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.”

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