Buying property in London: risks, scams and pitfalls (2026)

Authored by the expert who managed and guided the team behind the United Kingdom Property Pack

Yes, the analysis of London's property market is included in our pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in London. If you’d like to learn more about us, you can check our presentation page.

How risky is buying property in London as a foreigner in 2026?

Can foreigners legally own properties in London in 2026?

As of early 2026, foreigners can legally buy and own residential property in London without any nationality restrictions, making England one of the most open property markets in the world for international buyers.

The main conditions that apply to foreigners buying property in London are related to taxation rather than ownership rights, with non-UK residents paying an additional 2% Stamp Duty Land Tax surcharge on top of standard rates when purchasing residential property.

Since direct ownership is permitted, foreigners in London typically buy property in their own name, though some use UK limited companies for privacy or inheritance planning reasons, which triggers different tax rules and the potential 17% higher SDLT rate for corporate purchasers.

To qualify as a UK resident for SDLT purposes and avoid the surcharge, you need to have spent at least 183 days in the UK during any continuous 365-day period within the window that runs from 12 months before to 12 months after your purchase.

What buyer rights do foreigners actually have in London in 2026?

As of early 2026, foreigners in London have exactly the same property rights as British citizens once their purchase is registered with HM Land Registry, including full legal protection of their ownership and the ability to sell, rent, or mortgage the property.

If a seller in London breaches a contract after exchange, foreign buyers can enforce the agreement through English courts, seek specific performance to complete the sale, or claim damages for their losses, though this process takes time and costs money.

The most common buyer right that foreigners mistakenly assume they have in London is protection before exchange of contracts, when in reality either party can walk away from the deal at any time before that point, which is why gazumping remains a frustrating feature of the English system.

How strong is contract enforcement in London right now?

Contract enforcement in London property transactions is strong by global standards, comparable to the United States, Germany, or Australia, but pursuing a legal claim through the courts is slow and expensive enough that most disputes settle before trial.

The main weakness foreigners should know about in London contract enforcement is the pre-exchange vulnerability, because until contracts are formally exchanged, there is no binding agreement and sellers can accept higher offers, pull out without penalty, or simply change their minds.

By the way, we detail all the documents you need and what they mean in our property pack covering London.

Which scams target foreign buyers in London right now?

Are scams against foreigners common in London right now?

The UK has high overall fraud levels, with the Office for National Statistics reporting millions of fraud incidents annually, but outright property ownership theft in London remains relatively rare thanks to HM Land Registry's verification systems, which blocked 86 fraudulent applications out of over 4.4 million in 2024-25.

The type of London property transaction most frequently targeted by scammers is the completion payment transfer, where criminals intercept emails and send fake bank details to trick buyers into wiring large sums to the wrong account.

Foreign buyers who are most commonly targeted in London are those purchasing remotely without visiting the property, buying from overseas sellers, or dealing with vacant properties, because these situations create opportunities for impersonation and reduced scrutiny.

The single biggest warning sign that a deal may be a scam in London is any last-minute change to bank details sent by email, especially close to completion day, which is why this attack is sometimes called "Friday afternoon fraud" in the industry.

What are the top three scams foreigners face in London right now?

The top three scams that foreigners face when buying property in London are completion payment interception (fake bank details), title or seller impersonation (someone pretending to own a property they do not), and leasehold cost misdirection (hiding the true ongoing expenses of a flat).

The most common scam, payment interception, typically unfolds when criminals hack into email communications between buyer and solicitor, then send a convincing message with new "updated" bank details, and the buyer transfers their deposit or completion funds to a criminal account instead of the legitimate one.

The single most effective protection for each scam is: for payment fraud, always verify bank details by phone using a number you found independently; for seller impersonation, obtain the official title register from HM Land Registry; and for leasehold surprises, demand service charge history, reserve fund statements, and planned major works documentation in writing before you commit.

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How do I verify the seller and ownership in London without getting fooled?

How do I confirm the seller is the real owner in London?

The standard verification process in London is to purchase an official copy of the title register and title plan from HM Land Registry, which costs just a few pounds and shows the registered owner's name, any mortgages on the property, and restrictions that might affect the sale.

The official document foreigners should check is the title register, accessible through the GOV.UK Land Registry search service at gov.uk/search-property-information-land-registry, which shows the current registered proprietor and is the definitive record of who legally owns a property in England.

The most common trick fake sellers use to appear legitimate in London is impersonating an overseas owner of a vacant property, using forged identity documents and sometimes even fake solicitors, though this is rare and HM Land Registry stopped 97 such attempts worth around 58 million pounds in the year to March 2024.

Where do I check liens or mortgages on a property in London?

The official registry where you check liens or mortgages on a London property is HM Land Registry, and this information appears in the Charges Register section of the title register document you can purchase online through GOV.UK.

When checking for liens in London, you should request a full official copy of the title register and specifically review any entries in the Charges Register, which will list registered mortgages, legal charges, and any restrictions on how the property can be sold or transferred.

The type of encumbrance most commonly missed by foreign buyers in London is not a mortgage but leasehold-related obligations, such as outstanding service charge arrears, unpaid ground rent, or restrictions requiring freeholder consent for alterations or subletting that are buried in the lease rather than on the title.

It's one of the aspects we cover in our our pack about the real estate market in London.

How do I spot forged documents in London right now?

The most common type of forged document in London property scams is fake identification documents used to impersonate an absent or overseas property owner, and while this is rare overall, it sometimes happens when properties are vacant or when owners live abroad.

Specific red flags that indicate a document may be forged in London include urgency or pressure to complete quickly, reluctance to use a regulated conveyancer, requests to pay deposits to personal rather than client accounts, and any document that cannot be independently verified through official channels.

The official verification method in London is to obtain documents directly from the source, meaning title information from HM Land Registry via GOV.UK, solicitor credentials from the SRA or CLC regulator websites, and always treating any document sent by email as unverified until confirmed by phone using an independently sourced number.

What "grey-area" practices should I watch for in London?

What hidden costs surprise foreigners when buying a property in London?

The three most common hidden costs that foreigners overlook in London are the non-resident SDLT surcharge (2% of the purchase price, so 20,000 pounds or about 25,000 USD or 23,000 EUR on a 1 million pound property), leasehold service charges (averaging around 3,900 pounds or 4,900 USD or 4,500 EUR per year in London, with some exceeding 7,000 pounds), and the cost of a deal falling through before exchange, which can mean losing survey fees, legal costs, and search fees with nothing to show for it.

The hidden cost most often deliberately concealed by sellers or agents in London is the trajectory of service charges and planned major works in leasehold flats, and this sometimes happens when agents emphasize purchase price while downplaying the ongoing costs that can exceed 1% of the property value annually in concierge buildings.

If you want to go into more details, we also have a blog article detailing all the property taxes and fees in London.

Are "cash under the table" requests common in London right now?

For mainstream residential purchases in London, outright "cash under the table" requests are uncommon because UK conveyancing is heavily regulated with strict anti-money laundering checks, and solicitors must verify the source of funds before completing any transaction.

When pressure for unusual payments does occur in London, it typically comes in the form of "reservation" or "holding" fees framed as standard practice to secure a property, or steering buyers toward preferred intermediaries with unclear payment structures, rather than literal requests to underreport the purchase price.

If a foreigner agrees to any undeclared payment arrangement in London, they face serious legal risks including potential money laundering charges, tax evasion penalties, and the possibility that their purchase could be challenged or unwound, plus their conveyancer is legally obligated to report suspicious activity.

Are side agreements used to bypass rules in London right now?

Side agreements in London property transactions are not common for bypassing ownership rules, since there are no nationality restrictions to circumvent, but they sometimes appear in relation to fixtures, fittings, or informal promises about service charges and subletting rights.

The most common type of side agreement in London involves informal assurances about what is included in the sale, promises about future service charge levels, or rent-to-buy style arrangements in investor-targeted marketing that are not reflected in the formal contract or lease.

If a side agreement is discovered or challenged in London, the foreigner faces the reality that anything not written into the contract or lease is essentially unenforceable, meaning verbal promises about fixtures, management quality, or future costs carry no legal weight when disputes arise.

We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

Can I trust real estate agents in London in 2026?

Are real estate agents regulated in London in 2026?

As of early 2026, real estate agents in London are regulated but not through a single strict licensing regime like some countries have, instead operating under the Estate Agents Act framework enforced by National Trading Standards, with mandatory membership in an approved redress scheme.

A legitimate real estate agent in London should be registered with one of the two approved redress schemes, either The Property Ombudsman or the Property Redress Scheme, which you can verify by asking the agent directly or checking the scheme's member lists online.

Foreigners can verify whether an agent is properly compliant in London by asking "Which redress scheme are you in?" and then confirming this with the scheme, plus checking that the agency is not on the National Trading Standards public register of banned estate agents.

Please note that we have a list of contacts for you in our property pack about London.

What agent fee percentage is normal in London in 2026?

As of early 2026, the buyer typically pays zero agent fees in London because the seller pays the selling agent, with seller fees commonly running between 1% and 2% plus VAT for sole agency agreements, though this varies by property type and competition.

The typical range of agent fees in London covers 1% to 2% of the sale price plus VAT for standard residential sales, with higher percentages sometimes charged for sole selling rights or lower percentages negotiated for high-value properties.

If you are paying a "buyer's agent" or property finder in London, this is a separate service that should be clearly agreed in writing, and you should verify that anyone advising on mortgages or finance is properly authorized by checking the FCA Financial Services Register.

What due diligence actually prevents disasters in London?

What structural inspection is standard in London right now?

The standard structural inspection for London property purchases is a RICS Home Survey, which comes in different levels of depth, and this is entirely separate from the mortgage valuation that lenders conduct purely to protect their loan.

A qualified inspector in London should check the roof, walls, foundations, damp levels, electrical systems, plumbing, and any signs of subsidence, plus for leasehold flats they should note the general condition of common areas and any visible building-wide issues.

The professional qualified to perform structural inspections in London is a chartered surveyor, ideally one who is a member of RICS (Royal Institution of Chartered Surveyors) and has specific experience with the type of property you are buying, whether that is a Victorian terrace or a modern tower block.

The most common structural issues that inspections reveal in London properties are damp and moisture problems in older buildings, subsidence in areas with clay soil, outdated electrical wiring in period conversions, and for newer leasehold blocks, building-wide issues like cladding concerns or lift maintenance problems.

How do I confirm exact boundaries in London?

The standard process for confirming exact property boundaries in London is to obtain the title plan from HM Land Registry, which shows the property's extent in red edging, though these plans are "general boundaries" only and do not guarantee precise measurements.

The official document showing legal boundaries in London is the title plan, available alongside the title register through GOV.UK's Land Registry service, and for leasehold flats this should be read together with the lease's description of the demised premises.

The most common boundary dispute affecting foreign buyers in London is discovering that something they thought was included, like a parking space, storage cupboard, or terrace, is not actually demised to their flat under the lease and belongs to the freeholder or another leaseholder.

For any boundary-sensitive purchase in London, you should ask your conveyancer to confirm that what you are being shown on site matches what is legally demised, and for freehold houses with garden boundaries, consider hiring a surveyor to physically verify the lines on the ground.

What defects are commonly hidden in London right now?

The top three defects that sellers commonly conceal from buyers in London are leasehold financial liabilities (service charge increases, major works, weak reserve funds), building management issues (unresolved damp, poor maintenance, insurance problems), and payment fraud exposure during the transaction itself, with leasehold cost surprises being common rather than rare.

The inspection technique that helps uncover hidden defects in London is combining a physical survey by a RICS-qualified surveyor with documentary due diligence, meaning you request and scrutinize the last three years of service charge accounts, the reserve fund balance, any Section 20 major works notices, and the building's insurance certificate.

We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

What insider lessons do foreigners share after buying in London?

What do foreigners say they did wrong in London right now?

The most common mistake foreigners say they made when buying property in London is trusting the agent's narrative and sales presentation over the actual documents, only to discover later that verbal assurances about service charges, subletting rights, or building quality were not reflected in the lease or contract.

The top three regrets foreigners mention after buying in London are underestimating the ongoing costs of leasehold ownership, not verifying bank details independently before sending completion funds, and rushing to exchange contracts without fully understanding lease restrictions or service charge trajectories.

The single piece of advice experienced foreign buyers give to newcomers in London is to read the lease and service charge history before you fall in love with a property, because the purchase price is only part of the cost and the real financial picture is in the documents.

The mistake that cost foreigners the most money or stress in London is typically discovering unexpected major works bills or service charge increases after purchase, sometimes adding thousands of pounds per year to their housing costs beyond what they budgeted.

What do locals do differently when buying in London right now?

The key difference in how locals approach buying property compared to foreigners in London is that experienced London buyers are deeply skeptical of the sales process and assume nothing is agreed until exchange of contracts, while foreigners often treat a verbal acceptance or memorandum of sale as a binding commitment.

The verification step locals routinely take that foreigners often skip in London is interrogating the managing agent's reputation and the freeholder's track record for leasehold flats, often by searching online forums, checking Tribunal decisions, and asking current residents about their experience before committing.

The local knowledge that helps Londoners get better deals is understanding which areas have leasehold blocks with notorious management problems, which postcodes have subsidence risks due to clay soil, and knowing that a "best and final offers" deadline from an agent is often just a pressure tactic rather than a genuine cutoff.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about London, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why It's Authoritative	How We Used It
HMRC Non-Resident SDLT Guidance	HMRC is the UK tax authority and the definitive source for stamp duty rules.	We used it to confirm the 2% surcharge and residency test. We also used it to explain refund eligibility.
HM Land Registry	The official register of property ownership in England and Wales.	We used it to explain ownership verification. We also used it to describe the title register contents.
ONS Crime Statistics	The UK's national statistics agency with robust fraud prevalence data.	We used it to anchor fraud risk estimates. We also used it to avoid relying on anecdotes.
Leasehold Advisory Service	Government-funded advisory body specializing in leasehold rights.	We used it to explain service charge structures. We also used it to identify common dispute patterns.
UK Finance Annual Fraud Report	Banking sector fraud data including property payment scams.	We used it to explain payment interception risks. We also used it to support safer verification guidance.
Law Society Cyber-Fraud Guidance	Professional body documenting real conveyancing fraud cases.	We used it to explain Friday afternoon fraud patterns. We also used it to justify strict verification steps.
GOV.UK Redress Schemes	Official statement of agent registration requirements.	We used it to explain how to verify agents. We also used it to describe complaint pathways.
RICS Home Survey Standards	Leading UK professional body setting inspection standards.	We used it to define proper survey levels. We also used it to recommend appropriate inspection depth.
FCA Financial Services Register	Official verification for mortgage brokers and financial advisers.	We used it to explain how to verify finance intermediaries. We also used it to reduce clone firm risk.
London Assembly Housing Committee	Official London government research on leaseholder costs.	We used it for service charge statistics. We also used it to highlight London-specific leasehold concerns.

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.