Americans can buy real estate in the UK with no legal restrictions. However, financing, taxation and immigration requirements make the process more complex than buying in the US. This guide explains how, with the right professional support, purchasing UK real estate as a US citizen is entirely possible.
If you are an American considering buying real estate in the United Kingdom, the process can feel unfamiliar. While the UK market shares some similarities with major US cities, the legal structure, finance rules and tax treatment differ significantly.
The good news is that Americans are allowed to buy property in the UK, whether as an investment or as a future home, but the process is more complex for non-residents and requires careful planning. This guide explains the practical steps, mortgage options, residency limits and tax considerations that matter before committing to a purchase.
The information in this article provides general guidance only and does not constitute financial, tax or legal advice. Always consult a qualified specialist experienced in cross-border matters before making decisions.
Americans can legally buy real estate in the UK with no restrictions as real estate ownership in the UK is not tied to nationality, and there is no requirement to hold a UK visa or have UK residency.
Many international buyers purchase in England, particularly London and the South East, either as an investment, a future residence or a place to stay during frequent travel.
However, buying real estate in the UK does not grant residency rights. A purchase alone does not give you permission to live, work or stay in the UK beyond the standard visitor allowances. If you plan to move to the UK to live in the home you buy, you will need a separate visa route.
Americans can visit the UK for up to six months without applying for a visa in advance, but this does not grant permission to live permanently in the country or to work.
Buying real estate does not influence immigration status.
If you are planning to move to the UK and live in the property you buy, you must secure a visa before relocating. Visa routes include work-based visas, partner visas and investment-related visas, but requirements and eligibility differ depending on individual circumstances.
Get help: Speak to a trusted UK visa specialist
Buying real estate with cash is straightforward, but securing a mortgage from a UK lender as a non-resident is more complicated.
Lenders assess risk differently when the applicant does not live in the UK or earn income in sterling.
Common challenges include:
Down payments for non-resident buyers in England are typically higher than for UK residents. While UK residents may access mortgages with as little as 10 percent down, non-residents often need 25 to 40 percent.
Lending decisions vary significantly between banks and some lenders will only consider applicants with established UK residency or UK-sourced income.
If you plan to rent out the property, you may need a specialized buy-to-let mortgage with different affordability criteria. Lenders assess expected rental income and may require a higher minimum down payment for Americans.
Getting assistance from a UK mortgage broker is going to significantly increase your chances of securing a mortgage. Not only do they have access to special lenders, they will be able to help you with your paperwork and preparations.
Get help: Speak to a UK mortgage broker
The real estate transaction process in England differs from the US system in several ways:
You will need a licensed conveyancing solicitor experienced in handling purchases for non-UK residents.
They will conduct searches, verify the title, manage regulatory compliance and coordinate communication with the seller’s legal representative. If you are purchasing with a mortgage, they will also need to be on the lenders approved list.
The timeline for completing a purchase varies, but most transactions in England take between eight and twelve weeks once an offer is accepted.
International buyers sometimes experience delays when transferring funds, verifying identity documentation or meeting anti-money laundering requirements.
Get help: Speak to a conveyancing specialist
Both UK and US tax rules can apply when an American buys real estate in the UK.
The UK taxes certain types of income and gains arising from UK real estate, and the United States taxes its citizens on worldwide income regardless of residence.
Key areas to understand include:
Stamp Duty applies to purchases in England and is paid upon completion. Non-UK residents pay an additional surcharge on top of standard SDLT rates.
If you sell your UK real estate and make a profit, you may owe UK capital gains tax. Non-residents must report and pay this even if they do not live in the UK. Americans must also report gains to the IRS but may offset UK tax under the tax treaty.
If you rent out your UK real estate, rental income is taxable in the UK. Americans must also declare rental income on their US tax return.
Because the UK and the US have a tax treaty, you should not pay tax twice on the same income. However, reporting requirements remain complex and professional advice is strongly recommended.
Get help: Speak to a US/UK tax specialist
When buying real estate in the UK from the United States, you will need to transfer large sums of money for your down payment, tax, fees and potentially completion funds.
If you use your US bank, you are likely to face less competitive exchange rates, transfer fees and no guidance on timing. When you are moving significant amounts, even a small shift in the exchange rate can add thousands to your costs.
A specialist currency broker can often provide a better approach. They typically offer more favorable exchange rates, lower fees and support you through the transfer process. They also monitor the market and help you choose when to exchange your money, which is valuable if rates move in your favor or the market becomes volatile.
Currency brokers can also offer forward contracts. This allows you to lock in an exchange rate before your completion date, giving you certainty over what your down payment will cost in dollars and protecting you from market fluctuations.
Exchange rate movements can affect your mortgage affordability if your income is earned in dollars. Lenders may assess your income using a conservative exchange rate. If the dollar weakens, the sterling value of your income may appear lower, which can reduce the amount you can borrow.
Get Help: Speak to a currency and foreign exchange specialist
Before beginning your search or making a decision, consider:
Yes. There are no legal restrictions preventing Americans from buying real estate in the UK. You do not need a visa or residency to purchase, although buying property does not grant any immigration rights.
No. You can buy real estate in the UK without a visa. However, if you plan to live in the home full time, you must apply for a suitable visa before moving to the UK.
It is possible, but more difficult than for UK residents. Lenders may require a larger down payment, additional documentation and proof of income. Some lenders will only consider applicants with UK residency or UK-based earnings.
No. Purchasing real estate does not provide the right to live or work in the UK. Residency is determined by visa status, not property ownership.
Yes. Rental income from UK real estate is taxable in the UK. As a US citizen, you must also declare this income to the IRS, although the UK-US tax treaty helps prevent double taxation.
You will usually pay Stamp Duty Land Tax when completing a purchase in England. Non-UK residents currently face an additional surcharge. If you later sell the property, UK capital gains tax may also apply.
You can transfer funds through your bank, but exchange rates and fees may be costly. Many buyers use a specialist currency broker for better rates, lower fees and support when timing transfers to favorable market conditions.
Yes. There is no escrow system, contracts are not binding until the exchange stage and real estate agents primarily represent the seller. A conveyancing solicitor handles title checks and the legal transfer of the property.
Speaking to a UK real estate specialist before you begin your journey will help ensure you approach each stage with more confidence and less stress.
When you request an introduction to a real estate specialist through Experts for Expats, they will invite you to book a free discovery call to discuss your situation and see if and how they can help you understand:
