The UAE is emerging as a dominant force in the UK’s overseas mortgage market, with Middle Eastern buyers—especially from the UAE—rising as key players in property acquisitions, according to new data.
Recent research by Raw Capital Partners reveals that 30% of UK mortgage brokers surveyed have worked with clients from the UAE and the broader Middle East over the past five years. This percentage ties with Europe, making the Middle East the top international market for UK mortgage brokers.
Tim Parkes, CEO of Raw Capital Partners, explained that the UK property market continues to attract international buyers, offering stability in times of global uncertainty. The region’s real estate remains a coveted asset due to its solid value, low inflation, and stable prices. 
The appeal of UK property is further enhanced by favorable currency exchange rates. Over the past five years, the value of the pound has fluctuated, notably dropping against the dollar, creating an attractive environment for overseas investors. Currently trading at 1.29 to the dollar, the pound’s depreciation presents Middle Eastern buyers, whose currencies are typically pegged to the dollar (excluding Kuwait), with a favorable exchange rate for purchasing UK real estate.
In recent months, brokers have reported increased interest in UK property purchases as buyers rush to finalize transactions ahead of stamp duty land tax changes scheduled for April 1. The new tax structure, which introduces surcharges for non-UK residents, is expected to raise costs for property buyers.
Another factor influencing the market is the significant number of British nationals migrating to the UAE. According to Parkes, many of these expatriates are looking to purchase property in the UK as an investment, even while living abroad. This trend has become more prominent with the recent emigration of wealthy British individuals, driven by factors such as higher taxes in the UK.
Lorraine Wright, Senior Mortgage Sales Manager at Skipton International, noted that a substantial portion of her clients are from the UAE, many of whom are British expatriates. She added that the properties they secure mortgages for often include refinancing existing homes or converting them into buy-to-let investments while living overseas.
With strong interest from Middle Eastern buyers, the UAE continues to play a pivotal role in shaping the landscape of the UK’s overseas mortgage market.
