A Guide to Buying UK Property from Abroad as a Foreign National or Non-Resident

Discover why the UK remains a top choice for international property investors and gain an overview of everything you need to know about purchasing real estate as a foreign national.

According to a freedom of information request to HM Land Registry by lettings and estate agent Benham and Reeves in 2024, it was revealed that 189,793 properties throughout England and Wales were owned by foreign buyers. This was based on the number of titles registered with an overseas correspondence address. This doesn't take into account the huge number of overseas investors who have set up a UK based company to look after their property purchase and portfolio. Residents in Hong Kong are the top for property ownership in the UK with a significant 24,759 homes, followed by UAE, Ireland, Malaysia and China, data shows. Hong Kong residents equate to 13.2% of the overall overseas market.

The UK property market has long been a favourite among investors around the globe due to its reputation for stability and long-term growth potential, especially as the UK's housing shortage continues into 2025, with a reported 4.3 million homes required, as of Feb 2023, and the yearly supply falling short of required targets. You can learn more about the UK property market and the 18yr property cycle, in our comprehensive guide to property investing, here. Over the years, property prices, particularly in major cities like London, have demonstrated consistent appreciation, offering investors an opportunity to build wealth over time. London, being a global financial hub, attracts buyers looking for properties in one of the most sought-after locations in the world. Its diverse rental market also makes it a reliable choice for those seeking steady income through leasing.

Beyond London, there are plenty of opportunities for investors willing to explore other regions. Cities and towns in areas like the Midlands, the North East, and the North West present strong growth prospects. These regions often offer lower entry prices compared to London and the South East, yet still deliver promising returns. With proper research and guidance from local experts, investors can uncover opportunities to maximize their gains in these emerging markets and diverse investment strategies, such as social housing.

One of the key factors that makes the UK property market attractive is its well-established legal framework. Anyone can purchase a property in the UK, you do not need a VISA, or residency, but investors benefit from a system that protects property rights and provides clear procedures for buying and selling real estate. This level of transparency and regulation creates confidence for international buyers who may be unfamiliar with the process in other countries. If you are buying a property with cash then this makes everything much quicker, and the British mortgage process, although transparent is also detailed and stringent. This may make the process more complex initially, but find the right international broker and lender for your situation and this process can be much easier.

Additionally, the UK’s property market is highly diverse, catering to a range of investment goals. Whether it's luxury apartments in metropolitan areas, buy-to-let properties, or residential housing in up-and-coming towns, there is something to suit every type of investor. Combined with strong demand for housing across the country, this diversity ensures that there are plenty of opportunities to find properties that align with individual investment strategies, buy-to-let, social housing, short term lets, holiday lets, commercial to residential amongst others. Many overseas investors also purchase property for their children to use when they goto University, with a long standing high standard in education, the UK has many foreign students attending university up and down the country, providing those parents the ability to house their child whilst taking advantage of the high returns that can be made in this sector.

Mortgages

If you are looking to get a mortgage on a UK property then things do get a little more complex than a standard cash purchase, and in some cases, it will be easier and quicker to purchase the property for cash. Once the sale completes you can then look into re-mortgaging 6-12 months down the line, especially when lenders can see a rental history, and pulling the majority of your money back out, you can now invest again.

However somethings your lender will be looking at:

• Your credit history

• Your income

• Your outgoings

• Your proof of address, employment and ID

It is advisable to have all this information ready when speaking to a mortgage broker.

If you are not a British resident, or ex-pat it is not a problem, though you might find rates will be higher than those persons that hold British residency. Also, some lenders have stricter criteria for non-resident borrowers, with the legal, and tax implications depending on residency status. As a non-resident you may be asked for a higher deposit, 25% - 40%.

Stamp Duty is tax paid on property purchase here in the UK and foreign buyers will have to pay the same rates as UK residents, there may also be an additional surcharge, for non-resident buyers, this would be an additional 2% surcharge on top of the standard rates. Use our stamp duty calculator to easily work out what you will pay on your next purchase, here. *Remember to uncheck the Buyer is resident in the UK button!

Capital Gains Tax or CGT is tax on the profit from selling property.

One thing to point out is buying a property in the UK will not provide you with permanent resident status.

If you buy a property in the UK as an investment to rent it out, then you may be required to pay tax on your income, if you are a Non-resident landlord. If you meet certain criteria however this may be negated, but you have to apply for the Non-resident landlord scheme, using the NRL1 form, which can be found on the UK Government website, here. To be a non-resident landlord you have to live outside of the UK for more than 6 months in each tax year. For more information on the UK tax laws it is advisable to speak to an accountant or your solicitor before entering into any property purchase.

If you are interested in investing in the UK, speak to one of the experts at our trusted third party partner, Landmarka.