June 9, 2021

Can I buy UK property as an overseas investor?

Can I buy UK property as an overseas investor?

In a word, YES!

The UK property market is globally renowned as being one of the most accessible, stable, and profitable real estate investment options available. As a result many thousands of international and expatriate buyers purchase UK property for personal or investment use each year. For more than 15 years Prosperity Wealth and Developments has helped clients considering UK property options. This article offers an insight into the frequently asked questions and choices that often arise for a potential buyer. 

Why Invest in UK Property Investment?

Now we’ve quickly answered the question ‘Can I buy UK property as an overseas investor?’, we’re going to discuss why investors are interested in UK property. Property should form part of a balanced financial plan for any investor. The dual income potential of capital appreciation (rising property prices) and rental income, combined with the security and stability of ‘bricks and mortar’ assets makes property a low risk staple of your portfolio. Property also offers the unique advantage of allowing retail investors to ‘leverage’ their capital by borrowing via a mortgage. 

The UK is one of the most stable countries and economies in the world, making it a very attractive destination to store wealth for overseas investors. The UK property market also features distinctive fundamentals that have resulted in rising property prices and increasing rental demand. The growing population and restrictions on new housing supply means that the UK has been one of the best performing global property markets for the past two decades, with upward trends set to continue, hence the attraction to UK property as an overseas investor. 

In addition, the UK legal system and the professional infrastructure associated with UK property investment is exceptionally secure and well-established. The legal protections in place for property owners again offer stability and security. The British property industry is also heavily regulated – from architects, engineers, construction firms, to solicitors, estate agents and mortgage providers – International and overseas investors benefit from the transparency and professionalism of a well established and regulated system. 

Market Research and Due Diligence

For those considering UK property as an overseas investor, perhaps for the first time, an important part of the process is conducting the market research and due diligence necessary to make an informed, profitable and financially safe decision. You should feel confident in understanding the merits of the location, the property, the process and the property partners you have chosen. 

We at Prosperity pride ourselves on our consultative approach. Having helped thousands of investors secure profitable UK property investments we make no assumptions when meeting clients for the first time. Some of our buyers have never visited the UK and may have only a modest understanding of even the geography of the country. Some have visited London but have not considered the benefits of investing in key regional cities.

We work with our clients to help them research the UK property market and the potential investment locations to consider. We take the time required to build an understanding of what to expect from the investment journey. We have refined and streamlined the process to make it as seamless as possible for you.

In addition to understanding the market and conducting research on property options and locations, it is essential that International Investors review the property partners they are entrusting with their capital. For those considering ‘off-plan’ investment we encourage you to assess the track record of property developers:

  • How many developments have they completed? 
  • Does the development have Planning Permission?
  • What are the protections in place for your money? 
  • How is the project funded? 

Picking the right property developer and management partner is essential and will make the investment journey stress-free, enjoyable and profitable.

Hands-free Management 

Finally, when you have selected a location with good market potential and you have found a property developer you trust, you need to consider who will manage the Rental of your property. This is important as the smooth running of your property will provide income returns, or generate the rent required to cover mortgage servicing costs.

It is also important that the property is well maintained so that you can secure high quality tenants and you do not incur excessive maintenance costs. For Overseas Investors and Non Resident buyers finding a reliable Management partner is crucial as you need someone on the ground that can care for your property and tenants, whilst also providing you good communication and service. 

At Prosperity we understand from experience that Lettings Management is a crucial part of property investment. This is why we established a lettings business, Lamont & Co, to guarantee results and offer peace of mind. Anyone contacting Prosperity can also discuss the Rental Management of their potential purchases, and benefit from the advice of the highly experienced team at Lamont & Co.

In Summary 

UK property has proven itself as a safe haven asset that consistently offers stable and attractive returns. So ‘Can I buy UK property as an overseas investor?’ the answer is yes. Overseas Investors and Non-Residents can purchase UK properties with relative ease provided that they conduct the research necessary to find quality opportunities and property development and management partners. 

Prosperity will be releasing a comprehensive guide addressing the specifics of the process and technicalities associated with International Investing. The best way to find a property that fits your circumstances and meets your objectives is to get in touch directly to discuss your goals.