Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
India Now Leading Source of Overseas Funds for UK Property
One in ten homebuyers in the UK are using funds originating overseas to finance all or part of their property purchase, according to data from client due diligence firm Thirdfort. India, the USA, Hong Kong, Italy, and China are now the five most common countries where money is coming from for UK property transactions.
China has entered the top five countries for source of funds over the past two years, replacing France. This change reflects shifting patterns in international property investment flows into the UK market.
Cash Deposits and Alternative Funding Trends
Thirdfort’s analysis, based on over one million source of funds verifications, also examined the types of funds used in property transactions. Despite a general decline in cash use in wider society, cash deposits remain present in property purchases. Nine percent of buyers have made more than ten cash deposits into the account funding their purchase in the past six months, and eight percent have a median deposit value exceeding £500.
However, high cash deposits are steadily declining. The proportion of source of funds verifications with a median deposit exceeding £500 fell from 9.47% in 2023 to 9.52% in 2024, then to 7.54% in 2025, and further to 6.99% so far in 2026.
Cryptocurrency remains a marginal funding source, with only around 0.1% of buyers and giftors using funds from cryptocurrency. This figure has remained stable since 2024.
Ongoing Compliance Focus for Letting Agents
The findings come as the property industry continues to navigate regulatory requirements around anti-money laundering checks and source of funds verification. The data suggests that while most UK property transactions involve domestic funds and conventional financing methods, cross-border money flows and alternative payment patterns continue to require enhanced due diligence from regulated professionals.
Source: PropertyWire