UK property is recognised as one of the most appealing investment assets across the world. In comparison to other markets, the UK property market is not only resilient, but it can offer consistent short- and long-term returns.

While rental income can usually cover the monthly payments of the property and then some, this asset also grows over time. UK property prices have been on a consistent upward trajectory and have recovered well from the unease of 2021’s pandemic property market which saw some sharp peaks and troughs: a testament to the long-term resilience of this asset class. What’s more, the average property is worth 87% more now than it was a decade ago according to the Land Registry UK House Price Index, demonstrating the potential for capital growth.

The answer to ‘is it worth it?’ depends entirely on how you use it. If you use it as a long-term asset, it’s proven to be a potentially lucrative investment vehicle that can be scaled effectively.

Understanding where to invest in buy-to-let in the UK continues to be a tough decision for many investors, especially with so many potential locations in the country.

The best way to answer this question is to establish what you’re looking to achieve. Do you have short or long-term goals? Are you looking for capital growth or rental yields?

If you’re looking for more immediate rental returns, you’ll need a location with high yields and strong tenant demand. Look to established cities such as Birmingham and Manchester which have undeniably strong tenant demand, great job opportunities and an abundance of inner-city amenities.

On the other hand, if you’re investing for capital growth, you’ll want to identify areas that are regenerating and redeveloping the surroundings. This kind of activity often pushes property prices higher, which can deliver appreciation over time. Look to up-and-coming cities that are attracting those participating in the London exodus and experiencing swathes of regeneration, such as Leeds. 

Yes, absolutely. The UK market has a long history of welcoming overseas property investment. There are no restrictions on nationality or residency that prevent you from purchasing property in the UK.

According to research, there are around 184,000 international landlords with UK properties, which has increased 19% in the past five years alone.

While the process of purchasing UK property from overseas is generally a longer process and comes with more considerations, the returns often compensate for these. For overseas landlords purchasing additional property in the UK, a 5% charge will need to be paid.

This 5% will also be stacked with the 2% Stamp Duty Land Tax surcharge that applies to overseas investors.

Yes, it is possible for overseas buyers to obtain a UK buy-to-let mortgage. Many lenders offer specialist products for non-residents and expatriates. Eligibility criteria include factors like deposit size, income, and the expected rental income from the property.

In the current market, there’s plenty of mortgage products available including specialist products for non-residents and expats. The most important thing? It pays to shop around as speaking with an expert can usually result in you finding the ideal product to suit your needs.

Whatever option you go for, you’ll be expected to produce several instances of paperwork for the application, these include:

• Passport
• Proof of creditworthiness
• Mortgage affordability

You’ll also need a deposit (upwards of 25%) and demonstrate that you’ll be generating enough rental income from the tenant to cover the mortgage interest.

The amount you can borrow depends on how much rent the property can generate. Lenders will typically need your rental income to meet 125% of the monthly interest payments on the loan.

The UK is unique in that overseas investors must conduct their due diligence before they enter into any form of a binding contract. Typically this will involve:

• Checking the title of the property
• Obtaining a survey
• Carrying out searches of local authorities
• Obtaining information from the buyer
• Agreeing a terms of contract

All of this is usually done through a solicitor, which should be appointed locally in the UK. If the property is being financed through a mortgage, then an offer from the lender is also needed.

When both parties are ready to proceed, each then signs a separate but identical contract. Your solicitor will then agree with the vendor that contracts are binding, a process called ‘exchange of contracts’. At this stage, the buyer pays a deposit of between 5 and 10%.

Completion can take place on the same day as exchange, but usually there is a relatively short intervening period for legal and practical matters (usually no longer than 28 days). On completion, the balance of the price is paid, the title is transferred to the buyer and you can then take full possession of the property.

Working closely with a property investment company is one way to take some of the hassle out of the buying process. At Joseph Mews, for example, we work with investors buying off-plan property to guide them through the entire process, helping with mortgage applications, appointing advisers and maximising returns.

Yes, Stamp Duty Land Tax (SDLT) is mandatory for buy to let properties in the UK (England and Northern Ireland) exceeding the £125,000 threshold in 2025.

The temporary Stamp Duty holiday has ended, and standard rates apply, with the threshold now at £125,000.

Buy to let investments are subject to an additional 5% Stamp Duty surcharge on top of the standard rates. Overseas buyers may also face an additional surcharge.

Stamp Duty Rates from April 2025 (Including Additional Property Surcharge):