Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Everything you need to know before buying real estate is included in our United Kingdom Property Pack
The United Kingdom welcomes American buyers with open arms, and purchasing a home there is completely legal and straightforward for US citizens.
However, you will face extra taxes, stricter mortgage requirements, and more paperwork than local buyers, so understanding these differences early will save you time, money, and frustration.
This guide covers everything from stamp duty surcharges to IRS reporting, updated with the latest 2026 rules and real numbers.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in The United Kingdom.
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
Can a US citizen legally buy residential property in The United Kingdom right now?
Can I buy a home in The United Kingdom as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property anywhere in The United Kingdom, including England, Wales, Scotland, and Northern Ireland, with no nationality restrictions whatsoever.
The standard buying process involves making an offer through an estate agent, hiring a solicitor or conveyancer to handle the legal work, exchanging contracts (when you become legally committed), and then completing the sale a few weeks later when you pay the balance and receive the keys.
This process is the same for Americans as it is for British buyers, though you will need to provide additional identity verification and source-of-funds documentation because UK anti-money laundering rules apply to all property transactions.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in the UK.
Are there many Americans buying property and living in The United Kingdom in 2026?
As of early 2026, over 170,000 American expats live in The United Kingdom through various visa routes, and in 2024 a record 6,100 Americans applied for British citizenship, representing a 26% increase from the previous year.
American property buyers in The United Kingdom tend to concentrate in central London neighborhoods like Kensington, Chelsea, Marylebone, and Mayfair, as well as commuter areas in Surrey, the Cotswolds, and university cities like Oxford and Cambridge.
The top three reasons Americans are choosing to buy property in The United Kingdom include access to quality education (UK private school fees average around 22,000 pounds versus 38,000 pounds in the US), concerns about school safety and gun violence, and a desire to establish a "Plan B" residence in a stable country with strong legal protections.
The American expat community in The United Kingdom is clearly growing, driven by cost-of-living pressures in major US cities, the abolition of the UK's non-dom tax regime prompting wealthy residents to formalize their status, and increasing interest in UK citizenship by descent among Americans with British heritage.
Do foreigners have the same buying rights as locals in The United Kingdom?
Foreigners, including US citizens, have essentially the same legal rights to purchase residential property in The United Kingdom as British nationals, though they face additional financial burdens in the form of a 2% non-resident Stamp Duty Land Tax surcharge in England and Northern Ireland.
There are no property types or locations in The United Kingdom that are legally off-limits to American buyers, unlike some countries that restrict foreign ownership near borders or coastlines, though practical barriers like mortgage availability and stricter due diligence checks can make certain purchases more challenging.
We cover all these things in length in our pack about the property market in The United Kingdom.
Can I buy property in The United Kingdom without a residence permit?
Yes, you can purchase property in The United Kingdom while living abroad because UK law does not require buyers to hold a residence permit, visa, or any immigration status to own real estate.
The process for buying property in The United Kingdom while living abroad involves appointing a UK-based solicitor who will handle the conveyancing remotely, providing certified copies of your passport and proof of address from your home country, and arranging for funds to be transferred through verified banking channels.
Buying a home in The United Kingdom does not grant any visa or residency rights to the foreign owner, so owning property will not help you stay longer or give you a path to settlement or citizenship.
The main practical challenge non-resident buyers face when completing a property purchase remotely in The United Kingdom is the time difference and coordination required for signing documents, transferring large sums internationally, and responding quickly during the exchange-to-completion period when transactions can move fast.
Can US citizens own land in The United Kingdom?
Yes, US citizens can own freehold land outright in The United Kingdom, which means owning the property and the land beneath it indefinitely with no time limit or ground rent obligations.
The key distinction in The United Kingdom is between freehold ownership (you own the property and land forever) and leasehold ownership (you own the property for a set number of years but someone else owns the land), with most houses being freehold while most flats are leasehold.
There are no geographic zones or land categories in The United Kingdom where foreign ownership is restricted or prohibited, unlike countries that limit purchases near military bases, borders, or agricultural land.
Please note that we have a dedicated blog article about the land buying process in the UK here.
What documents will I need to buy in The United Kingdom?
The essential documents a US citizen needs to purchase property in The United Kingdom include a valid passport, proof of current address (utility bills or bank statements from the past three months), evidence of the source of your deposit funds, and if getting a mortgage, proof of income such as tax returns, pay stubs, and employment verification letters.
A local UK tax identification number is not required for foreign buyers at the purchase stage, though you may need to register with HMRC later if you earn rental income or sell the property at a gain.
A UK bank account is not strictly mandatory to complete a property purchase in The United Kingdom, but it is highly recommended because it simplifies paying your solicitor, utility bills, council tax, and ongoing maintenance costs.
Proof of funds is always required from foreign buyers in The United Kingdom due to strict anti-money laundering regulations, and you should expect to provide bank statements, investment account records, sale proceeds documentation, or gift letters explaining where your deposit money originated.
We have a whole section dedicated to all the documents you need in our The United Kingdom property pack.
Can a foreign-owned company buy property in The United Kingdom?
Yes, foreign-owned companies can legally purchase residential property in The United Kingdom, but using a corporate structure for a personal home often triggers higher taxes rather than lower ones.
Americans do sometimes use company structures to hold UK property, typically a UK limited company rather than a US LLC, but this approach is generally reserved for specific planning purposes like privacy, shared ownership among family members, or estate planning rather than tax savings.
Owning property through a company structure does not usually lower taxes compared to personal ownership in The United Kingdom because corporate buyers face a potential 17% SDLT rate on residential properties over 500,000 pounds, plus exposure to the Annual Tax on Enveloped Dwellings (ATED) which can cost thousands of pounds per year.
The main drawback of using company ownership for residential property in The United Kingdom is the additional compliance burden, including potential registration with the Register of Overseas Entities if it is a foreign company, annual ATED returns, and the loss of main residence capital gains tax relief that individuals enjoy.
Thinking of buying real estate in the UK?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What taxes and fees will I pay in The United Kingdom in 2026?
What are buyer taxes in The United Kingdom in 2026?
As of early 2026, the total buyer tax on a property purchase in England or Northern Ireland ranges from 0% to over 17% of the purchase price depending on value and buyer status, with a typical 400,000 pound home costing a standard buyer around 10,000 pounds in Stamp Duty Land Tax (roughly 12,500 USD or 11,500 EUR).
The individual components that make up the buyer tax burden in The United Kingdom include the standard SDLT rates (0% up to 125,000 pounds, 2% on 125,001-250,000 pounds, 5% on 250,001-925,000 pounds, 10% on 925,001-1.5 million pounds, and 12% above 1.5 million pounds), plus potential surcharges.
Buyer tax rates differ significantly for foreigners versus locals in The United Kingdom because non-UK residents pay an additional 2% surcharge on all bands, and anyone buying an additional property (including foreigners who own property elsewhere in the world) pays an extra 5% on top of standard rates, meaning a non-resident buying a second home could face combined surcharges of 7%.
If you want to go into more details, we also have a page detailing all the property taxes and fees in the UK.
What are other closing costs in The United Kingdom in 2026?
As of early 2026, the total closing costs excluding taxes that a buyer should budget for in The United Kingdom typically range from 1% to 3% of the purchase price, meaning a 400,000 pound property would incur roughly 4,000 to 12,000 pounds in fees (approximately 5,000 to 15,000 USD or 4,600 to 13,800 EUR).
The main closing cost categories in The United Kingdom include solicitor or conveyancer fees at 1,500 to 3,000 pounds plus VAT (1,900 to 3,800 USD), survey costs at 400 to 1,000 pounds (500 to 1,250 USD), Land Registry fees at 100 to 500 pounds depending on price, mortgage arrangement fees at 0 to 2,000 pounds, and searches at around 300 to 500 pounds.
The closing costs that are negotiable or optional for buyers in The United Kingdom include the level of survey you commission (basic valuation versus full building survey), whether you pay a mortgage product fee upfront or add it to the loan, and legal fees which can vary significantly between firms.
The single closing cost item that tends to surprise foreign buyers the most in The United Kingdom is the leasehold management pack fee, which can cost 300 to 800 pounds (375 to 1,000 USD) and must be paid before exchange just to obtain basic information about the flat you are buying.
Are there hidden fees foreigners miss in The United Kingdom right now?
The total amount of commonly overlooked fees that foreign buyers encounter in The United Kingdom can easily add 2,000 to 5,000 pounds (2,500 to 6,250 USD or 2,300 to 5,750 EUR) to the purchase, especially for leasehold flats in cities like London, Manchester, or Birmingham.
The top three hidden or unexpected fees that foreign buyers most often fail to budget for in The United Kingdom include the leasehold management pack or "LPE1" fee at 300 to 800 pounds (375 to 1,000 USD), telegraphic transfer fees of 25 to 50 pounds per payment which add up quickly, and the "notice of transfer" and "deed of covenant" fees charged by freeholders at 100 to 300 pounds each (125 to 375 USD).
The ongoing annual costs that foreign property owners often underestimate after purchase in The United Kingdom include service charges for leasehold flats at 2,000 to 6,000 pounds per year (2,500 to 7,500 USD), council tax at 1,200 to 4,000 pounds depending on location and band (1,500 to 5,000 USD), and building insurance at 200 to 600 pounds annually (250 to 750 USD).
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in the UK.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Can I get a mortgage as a US citizen in The United Kingdom in 2026?
Do banks lend to US citizens in The United Kingdom in 2026?
As of early 2026, several UK banks and specialist lenders offer mortgages to US citizens, though the availability is more limited than for UK residents and typically requires working with a broker who knows which lenders accept American borrowers.
US citizens generally receive similar treatment to other foreign nationals when applying for mortgages in The United Kingdom, though Americans sometimes face additional complications because US tax reporting requirements (like FATCA) make some smaller UK lenders reluctant to take on American clients.
The main reason some banks in The United Kingdom are hesitant to lend to American borrowers specifically is the compliance burden of FATCA reporting, which requires financial institutions to report information about US persons to the IRS, creating extra paperwork and liability concerns.
The typical approval rate for US citizens applying for property loans in The United Kingdom is difficult to quantify precisely, but with proper documentation, a 25% or larger deposit, and guidance from a specialist broker, most financially qualified American applicants can secure a mortgage.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in The United Kingdom.
What down payment do American people need in The United Kingdom in 2026?
As of early 2026, the minimum down payment for US citizens to obtain a mortgage in The United Kingdom is typically 25% of the property value, meaning a 400,000 pound home would require at least 100,000 pounds upfront (approximately 125,000 USD or 115,000 EUR).
The typical down payment range for foreign buyers in The United Kingdom spans from 25% at the minimum for well-documented applicants to 40% or more for buy-to-let properties, self-employed borrowers, or those with complex income situations.
A larger down payment does improve mortgage terms and interest rates for US citizens in The United Kingdom because lenders view lower loan-to-value ratios as less risky, so putting down 40% instead of 25% can unlock better rates and more lender options.
You can also read our latest update about mortgage and interest rates in The United Kingdom.
What interest rates do US citizens get in The United Kingdom in 2026?
As of early 2026, typical mortgage interest rates for US citizens in The United Kingdom range from approximately 4.5% to 6.5% depending on deposit size, loan type, and whether you are UK-resident or buying from abroad.
Interest rates for foreign buyers in The United Kingdom are generally similar to rates offered to local residents when comparing like-for-like products, though non-residents may be steered toward slightly higher-rate specialist products due to the limited number of lenders serving this market.
Fixed-rate mortgages are the most common choice for foreign buyers in The United Kingdom, with 2-year and 5-year fixed terms being standard, and typical terms including a 2-year fix at around 4.5% to 5.5% followed by reversion to a variable rate of 6% to 7%.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in The United Kingdom is the loan-to-value ratio, meaning how large your deposit is relative to the property price, with rates dropping noticeably once you pass the 25% and 40% deposit thresholds.
Can I use US income to qualify in The United Kingdom right now?
US-sourced income is accepted by several UK lenders for mortgage qualification, though the pool of willing lenders is smaller than for UK-based income, and you should expect conservative treatment of your earnings including currency buffers of up to 25%.
The documentation of US income that banks in The United Kingdom typically require from American applicants includes two years of federal tax returns, recent pay stubs or W-2 forms, an employment verification letter, and three to six months of bank statements showing salary deposits.
Alternative income verification methods accepted when standard US documentation is insufficient in The United Kingdom include CPA-prepared income statements, business accounts for self-employed borrowers, and asset-based lending where a high net worth can substitute for traditional income proof.
Get fresh and reliable information about the market in the UK
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How do US taxes interact with owning property in The United Kingdom?
Do I have to declare the property to the IRS from The United Kingdom?
Owning UK property directly does not by itself create a standalone IRS reporting requirement, because the IRS explicitly states that foreign real estate held in your personal name is not a "specified foreign financial asset" that must be listed on Form 8938.
There is no specific IRS form that US citizens must file simply for owning foreign real estate in The United Kingdom, though Schedule E is used to report rental income and Form 4797 or Schedule D would apply when you sell.
Simply owning property does not trigger reporting, but earning rental income or selling the property does create US tax filing obligations where you must report the income on your regular tax return and potentially use the Foreign Tax Credit to offset UK taxes paid.
Will I pay tax twice in the US and The United Kingdom in 2026?
As of early 2026, the risk of true double taxation for US citizens owning property in The United Kingdom is low because treaty protections and foreign tax credits typically prevent you from paying full tax to both countries on the same income, though you will likely need to file returns in both places.
There is a comprehensive tax treaty between the US and The United Kingdom that covers income from real property, and this treaty generally provides that rental income and capital gains from UK property can be taxed in the UK first, with the US then giving credit for UK taxes paid.
The Foreign Tax Credit works by allowing you to offset taxes paid to The United Kingdom against your US tax liability on the same income, so if you pay 24% capital gains tax on a UK property sale, you can claim that amount as a credit on your US return.
Property taxes (council tax) paid in The United Kingdom are generally not directly deductible on US federal tax returns for most taxpayers, though they may be deductible as a rental expense if the property is let out, making this a question best addressed with a cross-border CPA.
Do I need FATCA reporting when buying in The United Kingdom?
FATCA reporting (Form 8938) is generally not required for UK property itself because the IRS explicitly excludes directly-held foreign real estate from the definition of specified foreign financial assets that must be reported.
The FATCA thresholds that could trigger reporting for foreign accounts related to a UK property purchase are 50,000 USD at year-end (or 75,000 USD at any point) for US residents filing individually, and 200,000 USD at year-end (or 300,000 USD at any point) for US residents filing jointly.
FATCA (Form 8938) differs from FBAR (FinCEN Form 114) in that FATCA covers specified foreign financial assets with higher thresholds and is filed with your tax return, while FBAR covers foreign financial accounts with a 10,000 USD aggregate threshold and is filed separately to FinCEN, but neither requires reporting the UK property deed itself.
Consulting a US CPA before buying property in The United Kingdom is strongly recommended, and you should specifically ask about rental income reporting, capital gains treatment, the interplay between UK and US tax years, and whether any accounts you open will trigger FBAR or Form 8938 filing.
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.
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 The United Kingdom, 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 - SDLT Residential Rates | Official UK government tax rulebook for stamp duty in England and Northern Ireland. | We used it to anchor the baseline buyer tax rules and thresholds. We treated this as the source of truth for SDLT calculations. |
| HMRC - Non-UK Resident SDLT Surcharge | Official HMRC guidance written specifically for non-UK residents buying homes. | We used it to confirm the 2% surcharge exists and how residency is tested. We translated that into plain-English guidance for American buyers. |
| HMRC - Additional Dwellings Surcharge | Official HMRC guide for the second home and additional property stamp duty rules. | We used its band table effective April 2025 as the current higher rates reference. We showed how the 2% non-resident surcharge stacks on top. |
| HM Land Registry - Practice Guide 67 | Official Land Registry anti-fraud standard used by all UK conveyancers. | We used it to explain why identity checks feel intense for overseas buyers. We reinforced that these checks are normal and expected. |
| FCA Handbook - MCOB Lending Rules | Binding UK rulebook that lenders must follow for affordability checks. | We used it to explain why UK lenders ask for extensive income and outgoings evidence. We set expectations for how foreign income is assessed. |
| IRS - UK Tax Treaty Documents | Official IRS repository for the treaty texts Americans rely on. | We used it to confirm the treaty exists and to ground double tax relief explanations. We did not rely on blogs for treaty verification. |
| IRS - Form 8938 Q&A | IRS plain-language explanation of FATCA reporting scope. | We used it to clearly answer whether directly owned UK property must be listed on Form 8938. We explained when entity ownership changes the answer. |
| HSBC UK - Non-Resident Mortgages | Major international bank with published non-resident mortgage products. | We used it to confirm that mortgages for non-residents exist and to verify deposit and income requirements. |
| UK Home Office - Immigration Statistics | Official government data on settlement and citizenship grants. | We used it to document trends in Americans living in and moving to the UK. We triangulated this with market transaction data. |
| Bank of England - Bank Rate | Central bank official statement of the policy rate that influences mortgage pricing. | We used it to anchor the interest rate environment in early 2026. We cross-checked mortgage rate estimates against this baseline. |
Get to know the market before buying a property in the UK
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.