How to Invest in UK Property: A Guide for International Investors

Investing in UK property has long been a popular choice for international investors. With its robust legal system, thriving property market, and attractive returns, the UK offers opportunities that are hard to match. Whether you’re seeking a stable investment, rental income, or long-term capital growth, this guide will walk you through how to invest in UK property.

Why Invest in UK Property?

The UK property market is renowned for its resilience and potential for consistent returns. Here are some key reasons why it’s an excellent choice for international investors:

Stable Market: The UK boasts a well-regulated and transparent property market, ensuring a secure environment for investment.
Strong Returns: Rental yields in cities like Manchester, Liverpool, and Birmingham often surpass 5%, while long-term property value appreciation offers excellent growth potential. Find out more on what are the best rental yields.
High Demand: A growing population and limited housing supply ensure steady demand for rental properties, especially in urban areas.
Diverse Opportunities: From luxury flats to affordable buy-to-let properties in regional cities, the UK offers options for every investor profile.

John Treacy, Expat Investment Director at Centrick Invest, notes:

“For international investors, the UK property market offers a unique combination of stability and growth. Cities like Manchester and Birmingham are particularly exciting, with rental demand that’s both consistent and increasing year-on-year.”

How to Invest in UK Property?

Step 1: Legal Considerations for Overseas Investors

Can Overseas Buyers Invest in UK Property?

Yes, international buyers can purchase property in the UK without any restrictions. However, there are several legal considerations to keep in mind:

Stamp Duty Land Tax (SDLT): Overseas buyers are subject to an additional 2% SDLT surcharge on top of the standard rates. For example, a £500,000 property would incur approximately £30,000 in SDLT. However, as of April 1st, 2025, the SDLT threshold will change to £125,000 but this does not apply to existing leases.
Visas and Residency: While owning UK property doesn’t require residency, some tax implications may vary depending on your status.
Legal Representation: Engaging a solicitor familiar with property law is essential. They’ll handle the conveyancing process, ensuring your purchase is compliant and hassle-free.

Our team works closely with trusted legal experts to guide international clients through these complexities as part of our comprehensive property investment services offering property investment services.

Tax Implications

Income Tax: Rental income is subject to UK income tax, currently at rates of 20%, 40%, or 45%, depending on your earnings. Non-residents can claim personal allowances if eligible.
Capital Gains Tax (CGT): When selling a UK property, non-residents must pay CGT on any profit. The current rate is 18% to 24%, depending on your income bracket.
Double Taxation Treaties: Many countries have agreements with the UK to prevent double taxation. Consult a tax advisor to understand your specific situation.

Sion Bennett, Expat Investment Director at Centrick Invest, highlights:

“Navigating tax regulations as an international investor can seem complex, but with the right guidance, these challenges can be easily managed. Our goal at Centrick is to simplify the process so clients can focus on the opportunities, not the obstacles.”

Step 2: Financing Your UK Property Investment

Can International Investors Get a Mortgage?

Yes, many UK lenders offer buy-to-let mortgages to overseas investors. Here are some key points to consider:

Deposit Requirements: International buyers typically need a larger deposit, often 25-30% of the property’s value.
Interest Rates: Rates may be slightly higher for non-residents compared to UK-based buyers.
Proof of Income: Lenders will require documentation to verify your income and financial stability.

Centrick Invest connects international clients with experienced mortgage brokers every day, making it easy to secure competitive financing options – simply get in touch with our team using the form at the bottom of this blog to enquire!

Step 3: Choosing the Right Location

The UK’s property market is incredibly diverse, with each region offering unique advantages. Here are some of the best locations for international investors:

Manchester

Rental Yields: 6.1% on average.
Why Invest: As a thriving economic hub with affordable property prices, Manchester offers some of the UK’s highest rental yields and strong growth potential. In December 2024 (provisional), the average house price in Manchester was £245,000, up 2.3% from December 2023. Meanwhile, private rents rose to an average of £1,300 in January 2025, marking an 11.1% annual increase from £1,171 in January 2024. This impressive rental growth highlights Manchester’s strong tenant demand and vibrant rental market.

With rental yields on the rise and property prices offering attractive entry points, Manchester remains a compelling destination for investors seeking high returns and long-term growth potential.

Birmingham

Rental Yields: 5.3%.
Why Invest: Birmingham, offers exceptional connectivity—bolstered by HS2, a £1.9 billion regeneration project, and a booming rental market. In December 2024 (provisional), the average house price in Birmingham reached £232,000, representing a 3.3% increase from December 2023. Additionally, private rents climbed to an average of £1,043 in January 2025, marking an 8.4% annual rise from £962 in January 2024.

With rising rental demand, steady house price growth, and transformative infrastructure projects on the horizon, Birmingham presents a prime opportunity for investors seeking long-term returns and sustainable growth.

Cambridge

Rental Yields: 5.8%.
Why Invest: Renowned for its thriving tech sector and academic excellence, Cambridge consistently attracts high-income tenants, making it a prime location for property investment. Developments like The Hale offer modern, energy-efficient homes that appeal to professionals and families alike. In December 2024 (provisional), the average house price in Cambridge reached £515,000, reflecting a 4.4% increase from December 2023. Meanwhile, private rents rose to an average of £1,755 in January 2025, marking an 8.7% annual increase from £1,613 in January 2024—outpacing the East of England’s regional growth of 8.4%.

With strong rental demand, rising property values, and a reputation as a hub for innovation, Cambridge offers investors a rare opportunity for sustainable growth and long-term returns.

Burton-upon-Trent

Rental Yields: 6.3% on average.
Why Invest: Burton upon Trent, a thriving market town, presents a strong investment opportunity, driven by ongoing regeneration projects and affordable property prices. Developments like Crown Works offer luxury living in a charming urban setting, appealing to both professionals and families. In December 2024 (provisional), the average house price in East Staffordshire reached £221,000, reflecting an 8.7% increase from December 2023—outpacing the West Midlands regional growth of 4.2%. Additionally, private rents rose to an average of £797 in January 2025, marking a 9.9% annual increase from £725 in January 2024, also surpassing the West Midlands average growth of 7.7%.

With rapid property price growth, rising rental demand, and premium developments enhancing its appeal, Burton upon Trent offers investors an ideal opportunity for high returns and long-term capital growth.

John Treacy adds:

“Cities like Manchester and Cambridge have become prime locations for international investors. The combination of strong rental yields and affordable entry points is hard to ignore.”

Step 4: Working with Experts

Navigating the UK property market as an international investor can be challenging, but working with experienced professionals makes all the difference. Here at Centrick Invest, our dedicated team of property investment experts have decades of experience when it comes to guiding investors towards success, helping you pinpoint exceptional opportunities, navigate the purchasing process, and provide unmatched expertise. We proudly offer:

Tailored Advice: Our team helps you identify properties that align with your goals, whether that’s rental income, capital growth, or both. Our team then works alongside you to source opportunities that fit your needs.
Comprehensive Support: From legal guidance to property management, we help you handle every aspect of your investment journey seamlessly.
Local Expertise: With deep knowledge of the UK market that we have cultivated over decades, we’re always on-hand to help you make informed decisions and avoid common pitfalls.

Sion Bennett comments:

“Investors from overseas are often amazed by the diversity of opportunities in the UK market. Whether you’re looking for a high-yield property in Birmingham or a premium development in Cambridge, there’s something for every strategy.”

Case Studies: International Investors with Centrick Invest

Case Study 1: Expanding a Portfolio from Hong Kong

Client Profile: British/South African expat living in Hong Kong, owning an unencumbered Central London property valued at £1.2m and looking to grow their portfolio.

Our Approach:

Strategic Remortgage: After an introduction from an SJP partner, our Expat Investment Director, Siôn Bennett, met with the client to assess their goals. We facilitated a remortgage through a private bank, releasing £500k in equity while keeping the London property cash flow positive.
Targeted Property Acquisitions: The released equity funded three additional property purchases—one in London and two in Birmingham—using mortgages with 60%-65% loan-to-value (LTV).
Optimised Portfolio Structure: The entire £1.3m portfolio was structured under a company setup, ensuring all properties remained cash flow positive with long-term growth potential.

The Outcome: A diversified, income-generating portfolio perfectly aligned with the client’s growth objectives.

Case Study 2: First-Time Investor in Shanghai

Client Profile: A 36-year-old English teacher who had lived in Shanghai for six years, saving £70,000 for investment and looking to enter the UK property market.

Our Approach:

Educational Engagement: Following a presentation in Shanghai by John Treacy, our team conducted virtual follow-ups to understand the client’s needs.
Smart First Purchase: We guided the client in securing a one-bedroom apartment at CooperGate for £192,500, with a 75% LTV mortgage. Completion is set for March 2024.
Network Growth: Impressed by their experience, the client referred two friends, both of whom also purchased properties through Centrick Invest.

The Outcome: A successful first-time investment, leading to organic referrals and the start of a growing property portfolio.

Step 5: Planning for Long-Term Success

Investing in UK property is about more than just the initial purchase – in fact, that’s just the first step in a much longer process, and aftercare is vital for investment success. To truly excel in your property investment journey and achieve the goals you set out, you must consider…

Regular Reviews: Monitor rental income, market trends, and property values to maximise returns.
Professional Management: Working with managing agents ensures smooth day-to-day operations.
Expanding Your Portfolio: Reinvesting profits into additional properties can compound your growth.

If you are considering purchasing your first investment property, or simply want to talk about optimising your long-term investment strategy, get in touch with our team today. Centrick Invest offers a range of ongoing support to help you manage and grow your UK property portfolio effectively.

Start Your UK Property Investment Journey Today

Investing in UK property as an international buyer doesn’t have to be complicated, and you don’t have to do it alone. With dedicated professionals on your side, you can boost your investment strategy to new heights. That’s precisely what we do here at Centrick Invest: our team of trusted investment experts are on-hand to help you on your investment journey where you’ll benefit from expert guidance, tailored solutions, and access to some of the UK’s most exciting investment opportunities.

Explore our property investment services and developments or contact us today to learn how we can help you achieve your investment goals. Your UK property journey starts here!