Invest in UK Property Remotely – Can You?
Forth Action Invest on February 28, 2023Are you looking to take a slice out of the UK property market and invest in UK property remotely? You’re not alone! The number of homes in England and Wales bought by overseas buyers has almost tripled in the last decade.
This is likely due to the robust legal system in the UK, the relative stability of bricks and mortar and the high rental yields.
Whatever your reason and interest in the UK property industry, we’ve got you covered with some key bits to know and prepare before getting started.
This article will include the following:
- Can you invest in real estate remotely?
- Why invest in UK property?
- What is the best way to invest in UK property?
- How can I buy a house without citizenship in the UK?
- Which areas are the best to invest in?
- How to buy a house remotely in the UK
*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key.*
Can you invest in real estate remotely?
Yes! It’s perfectly legal for non-UK citizens to invest in property, but you must be over the age of 18 and have the funds to be able to purchase (or the means to borrow it.)
There are relatively no restrictions on where you buy or what you buy. But as with any investment, you must do your due diligence and be aware of risks ahead of any financial decisions.
But it’s worth knowing that cash buyers will find it much easier to secure their desired properties than those who will need to borrow the money against a mortgage or other means.
Don’t let that stop your dreams of UK investing though. While the mortgage options are more limited, some lenders will borrow to non-UK residents. You just might have to pay a larger deposit.
According to the Financial Times, two-thirds of overseas purchases come from buyers based in just a handful of countries. Hong Kong is the largest source of buyers, along with…
- Jersey
- Singapore
- US
- Ireland
- Guernsey
- UAE
- Malaysia
- Isle of Man
- Australia
- Kuwait
- BVI
- France
- China
From one of our projects
Why invest in UK property
The reasoning may differ between investors, but the stability in the UK market has been an appeal over the last few years.
Strong economic climate
While the UK is no stranger to recessions or short-term yo-yos, it generally has a calm sense of consistency within the economic climate.
Property prices have more than trebled since the start of the 21st century, with the average cost of a home rising by 207% in the last two decades.
The average price of a home in the UK in 1999 was £91,199. By November 2019, the average price of a home sat at £232,096. And in October of 2022, the average UK house price reached £296,000.
Growing rental market
Demand for rental homes across the UK has jumped by nearly a quarter in just one year. This has led to a significant supply and demand issue, with more aspiring renters than properties available.
This can be advantageous to those looking to purchase property as the demand is there – providing the home is well-situated.
Along with the anticipated growth in tenants, rental prices are also expected to rise. Between 2023 and 2026, there could be an annual rental growth of three to four percent. And the cumulative rental growth from 2022 to 206 is forecast to reach 20.5%.
What is the best way to invest in UK property?
The general steps to buying a property (residential or commercial) in the UK usually looks like this:
- Reviewing mortgage options or lenders
- Finding the property and location that matches your requirements
- View the property (can be done remotely) and make an offer to the estate agent
- Engage with a solicitor who can complete the sale process and agreements
- The property can then be surveyed, which will provide you with full details of the property
- The mortgage can then be finalised if all agreed
- Now you can buy the relevant insurance
- You’ll then sign and exchange contracts
After signing and exchanging contracts, the property is yours. Then, you’ll want to make sure you meet the relevant standards and regulations before letting it out.
Whether you’re completely renovating to a whole new look or simply sharpening up the place, the property is yours.
While this isn’t an exhaustive list, there are some things to remember throughout your journey into investing in property remotely in the UK:
Consider the costs
Speaking to a financial advisor who specialises in UK investments could be beneficial to ensure the smooth operation of the mortgage process (if required.)
Other costs, besides property taxes, include stamp duty, deposit, legal fees, fees for land registry and mortgage expenses. You must be aware of all costs and risks when it comes to investing.
Decide on an investment style and location
It’ll be up to you which investment strategy you opt for. This could be traditional residential buy-to-let or HMOs or a more commercial-led portfolio.
Deciding on this and the area can be done remotely, but speaking with relevant people and companies who are in that area is beneficial.
The types of homes available can also differ depending on the area. House styles in the UK come in the form of detached houses, semi-detached, terraced housing, end-of-terrace homes, flats, converted flats, split-level flats, studios, cottages, bungalows, mansions and conservation properties. Each has its own target audience and typical customer, with each city or location seeing different variations of these common properties.
If you’re looking to invest in Manchester or the North West, we at Forth Action Invest are specialists in that area and can provide you with the right information remotely.
Work with specialists
This will be the easiest way to ensure each step is completed as it should.
Investing in London can be quite different from investing in Manchester or the more countryside regions in the North West, so it’s crucial you know the ins and outs of your chosen location.
If you can’t get a feel for the place in person, it’s paramount to ensure there’s someone who knows it like the back of their hand.
How can I buy a house without citizenship UK?
Regardless of whether you’re a resident, there are no legal restrictions on international buyers investing in property in the UK.
You can go about buying a property in the same way you would if you were a citizen.
Which areas are the best to invest in?
London has long been a popular area for overseas investors. But cities like Liverpool and Manchester have also seen a soaring increase in attention from international buyers.
Both of these locations have experienced high rates of new development over the last 10 years, with these areas becoming increasingly popular for UK residents as many opt to move away from the capital.
Manchester, for example, is set to reach record population levels as it grows faster than the national average. It’s quickly becoming a golden destination for property investors in the UK and overseas.
The average property price in Manchester is £214,886, with the demand being 1:5 – with an 18.8% predicted growth by 2026.
Further out into the North West is also becoming an excellent choice for investors, as are cities like Liverpool, Newcastle and Birmingham.
Liverpool follows a similar predicted growth pattern by 2026, and Birmingham closely follows at 15.9% with an average property price of £217,659.
To learn more about our picks for the top places to invest in Manchester, read our blog here.
Invest in UK Property Remotely: How to buy a house remotely in the UK…
Are you an overseas investor looking to purchase property in the UK? Here at Forth Action Invest, we’re experienced in working closely with international buyers.
We can assist with finding you unrivalled exclusive and off-the-marketing investment opportunities in Manchester and the North West.
So whether you’re looking to buy your first UK-based property or your seventh, you’re in safe hands with us. Book a consultation with our experts, here, to discuss the best property options and investing in property remotely in the UK.
*Please note this blog does not constitute investment advice. We recommend you conduct your own due diligence before making any investment, including seeking independent financial advice.