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.
The analysis, based on more than one million source of funds verifications completed through the platform, reveals that India, the USA, Hong Kong, Italy and China are the five most common countries where money is coming from for UK property transactions.
China replaces France in top five
Over the past two years, China has entered the top five countries for source of funds, replacing France which previously held that position. The shift reflects changing patterns in international property investment flows into the UK market.
Thirdfort’s data also examined the types of funds used in transactions. Despite declining cash use in wider society, cash deposits remain present in property purchases. Some 9% of buyers have made more than 10 cash deposits into the account funding their purchase in the past six months, whilst 8% have a median deposit value exceeding £500.
Cash deposits declining steadily
However, high cash deposits have shown a steady decline. 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, despite increased technology adoption in the property sector.
Olly Thornton-Berry, co-founder of Thirdfort, said: “Our data points to a market where most buyers are funding a purchase in ordinary, explainable ways. Meanwhile, there is a much smaller, more identifiable set of transactions that create the biggest headaches with money crossing borders, cash moving in patterns worth understanding and more gifts being made.”
The findings come as the property industry continues to navigate regulatory requirements around anti-money laundering checks and source of funds verification, with recent government appointments expected to maintain focus on compliance standards.
The data suggests that whilst the majority of 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.
