British citizens and residents with foreign-sounding names are encountering additional scrutiny and delays when attempting to purchase property in the UK, according to a property law firm.
Tatiana Sharposhnikova, Chief Executive of Sharpwell Property Law, has stated that discrimination exists in the British property market, with lenders applying heightened due diligence based on names rather than actual risk factors.
Additional scrutiny reported
“We have seen cases where nothing more than a foreign-sounding name was enough to invite extra scrutiny, delay, or an outright refusal to proceed, because it was easier to walk away than to get to truly understand the client,” Sharposhnikova said.
The firm reports acting for an increasing number of British residents and citizens whose property purchases are financed in part by family members abroad. These transactions, which may involve parental contributions to deposits or inherited funds from overseas relatives, are reportedly triggering the same level of scrutiny typically reserved for high-risk transactions.
According to Sharposhnikova, her clients include professionals, taxpayers, and long-standing UK residents, some of whom have lived and worked in the country for decades and hold permanent residency rights.
Market impact
The firm suggests that the additional checks are causing delays of several weeks, collapsed property chains, and transaction failures. This adds further pressure to an already strained housing market, according to the firm’s assessment.
The issue appears to affect transactions involving cross-border family financial support, which Sharposhnikova describes as “not unusual” but sufficient to trigger red flags from banks and lenders. This comes at a time when international applicants form a significant portion of property market activity, particularly in major cities.
“We have a situation where being British isn’t enough to buy a house in Britain – where citizenship and residency count for nothing if a name, a family connection, or a bank transfer looks wrong on paper,” Sharposhnikova stated.
Due diligence debate
Whilst acknowledging the importance of robust checks in property transactions, Sharposhnikova argues that the current system fails to distinguish between legitimate family gifts and genuine risk indicators.
“Due diligence exists to manage genuine risk, not to penalise ordinary financial support between family members,” she said. “Yet, in practice, we see banks and lenders raising red flags at the mere mention of money crossing a border.”
The claims highlight ongoing tensions between anti-money laundering requirements and the practical challenges faced by buyers with international connections in accessing UK property finance.
