Can Foreigners Rent or Buy Property in the UK?
Yes, foreigners can rent and buy in the UK. The rules for foreigners buying property in the UK are much more relaxed than those for renting. Foreigners can rent in the UK if their immigration status gives them the right to rent; however, there are no restrictions on purchasing property. Landlords are legally required to carry out a ‘right to rent’ check on any prospective tenants. In particular, they must clarify the immigration status of the individual by looking at the passport or biometric residence permit of the applicant to determine if they have:
- A valid visa permitting residence
- Indefinite leave to remain, or
- British citizenship.
In this article, we will explain how to buy property in the UK as a foreigner, renting property UK non-residents, UK mortgage for foreigners, UK property tax for non-residents and the best cities to invest in property UK.
Renting vs. Buying: Which is the Better Option?
There is no single correct answer to the question of whether it is better to buy or rent in the UK as a foreigner. There are several factors to consider, including:
- How long do you expect to remain in the UK? If you plan to stay in the long term, buying may be advantageous
- Whether you have sufficient funds to buy or put down a deposit to buy a home.
- Whether you have been in the UK long enough to establish a credit rating. You must have a strong credit rating in the UK if you wish to buy a property with a mortgage
- Where you wish to live – for example, if you wish to live in central London, it may be preferable to rent due to the extremely high value of property in this area
- If you are unsure where you want to live in the UK – renting allows you to ‘try before you buy’.
How to Find Rental Properties in the UK
Rental properties are often advertised on the main property platforms in the UK, including Rightmove, Zoopla, Onthemarket and Openroom. If you wish to rent a room rather than a whole property, consider using the Spareroom website or looking at other platforms such as Gumtree. If you would prefer a short-term rental (e.g. one month) rather than committing to a longer tenancy agreement, consider using websites such as Airbnb, Booking.com and Vrbo.
If you would rather speak to someone in person, it is better to use the services of a letting agent. If you visit the nearest high street to the area you are interested in, you may find multiple letting/estate agents who can help you find a rental property in the UK.
Understanding UK Tenant & Landlord Rights
It is important to understand the rights of tenants and landlords in the UK. The most common form of tenancy arrangement is the ‘assured shorthold tenancy agreement’. Under this type of contract, you have the right to:
- Receive a copy of the How to Rent guide, a Gas Safety Certificate where applicable, information about how your deposit is protected, and an Energy Performance Certificate (EPC)
- Have your deposit protected
- Expect that your landlord will maintain the structure and exterior of the property.
- Have smoke alarms on every floor and carbon monoxide alarms in rooms that contain appliances using solid fuels such as coal and wood
- Have any problems with the water, electricity and gas supply resolved by the landlord
- Expect the landlord or letting agent to maintain any appliances and furniture they have supplied.
- Expect the landlord or letting agent to carry out most repairs in a timely manner
- A property that is safe for human habitation.
- An annual gas safety check
- At least 24 hours notice of any visits for activities such as repairs.
Correspondingly, a landlord has the right to expect that their tenant pays their rent on time, looks after the property, is considerate of their neighbours, does not take in lodgers, and reports any repairs required.
Buying Property in the UK: Step-by-Step Process
Buying a property in the UK involves several steps, which can take several months, as follows:
- Determine your budget – including stamp duty, legal fees, and moving costs
- Get a Mortgage Agreement in Principle from a lender
- Find a property
- Make an Offer
- Instruct a Conveyancer to handle your purchase if your offer is accepted – they will carry out the required legal checks and prepare your contracts.
- Survey and searches – this entails assessing the condition of the property and checking the legal status of the property
- Finalise mortgage – Whereby your bank will confirm your mortgage offer
- Exchange of contracts – at this point, you will need to pay the deposit that commits you to the purchase.
- Completion – Pay any remaining balance, receive the keys to your new home, and register ownership with the Land Registry.
Mortgage Options for Foreign Investors
It is perfectly possible for foreign investors to secure mortgages on UK properties. Many banks offer mortgages to non-residents. For example, HSBC UK offers mortgages to non-residents from an ‘approved’ country; these include Australia, Egypt, Guernsey, Hong Kong, Isle of Man, Jersey, Malaysia, Philippines, Qatar, Singapore, Switzerland, Taiwan, United Arab Emirates (UAE) and United States of America (USA). The qualification criteria are often stricter than for residents with more stringent earning and loan-to-value requirements.
To determine your mortgage options as a foreign investor, we recommend speaking to a recommended and trusted mortgage broker who can explain your options and recommend the best mortgage deal for your needs.
Legal Requirements & Property Taxes for Non-Residents
It is important for non-residents buying property in the UK to be aware of the additional legal and tax implications. Non-residents are required to pay an additional 2% on stamp duty when purchasing property in the UK. In addition, you may need to pay income tax in the UK if you are renting out the property. Non-resident owners of UK property must also pay capital gains tax if they make a profit when it is sold.
To fully understand the legal and tax implications of buying and selling property in the UK as a non-resident, we recommend instructing the services of an experienced and trusted accountant based here who can explain all you need to know.
Best UK Cities for Property Investment
According to property investment firm Joseph Mews, the best places to invest in property in the UK in 2025 are as follows:
- Birmingham
- Manchester
- Liverpool
- Derby
- Nottingham
- Glasgow and
- Leeds
In addition, according to Zoopla, the highest-yielding areas for buy-to-let property in the UK are as follows:
- Sunderland
- Aberdeen
- Burnley
- Dundee
- Glasgow
- Middlesborough
- Blackburn, and
- Hull
Hidden Costs of Renting & Buying Property in the UK
As a foreigner with property in the UK, there are some hidden costs to be aware of, as follows:
| Renting | Buying |
| Council Tax – this is normally paid by the tenant to the local authorityDeposit – paid to the landlord as security; however, it is refundable at the end of the tenancyLetting agent fees – charged by letting agents for finding tenants and managing the propertyProperty insurance: Landlords may need to insure the property against damage or loss. Tenants may also need to be insured for their contents. | Ground rent/service charges if buying a leasehold propertyLand Registry fees Legal fees Mortgage arrangement feesProperty InsuranceRemoval costs Stamp Duty Land Tax (SDLT) – a tax payable on the purchase price of a property based on its value. Survey and valuation fees |
Common Mistakes to Avoid When Renting or Buying
One of the most common mistakes made when renting or buying is rushing the process. When it comes to buying, always ensure that you instruct an experienced conveyancer who will check the legalities of your property. If you are buying a leasehold property, ensure that it has a long lease period remaining. Preferably, this should be 100 + years, but avoid anything with less than 80 years remaining. Ensure that your conveyancer carries out thorough checks and searches and that you understand what they mean.
Purchasers should also ensure that a full structural survey is undertaken to make sure that the building is sound and is not in need of repair. This applies to new builds, too. If serious issues are found, it may be prudent to instruct a specialist, such as a structural engineer, to carry out further checks.
When it comes to renting, one of the biggest mistakes is not having an assured short hold tenancy agreement in place. This gives important protection to both the landlord and tenant in terms of their rights and responsibilities.
