Buying a house in England 2026

Can you buy a house in England as a foreigner?

Yes. You do not need to live in the UK to buy a house, a flat or a plot of land in England. UK tax law even plans for buyers from abroad: since 1 April 2021 they have had their own surcharge on the land tax. Buying is expressly provided for. It just costs a little more.

Where the house stands matters. Stamp Duty Land Tax applies in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax with its own procedure, Wales Land Transaction Tax. Both have their own pages here: buying in Scotland and buying in Wales.

Then the form of ownership. With freehold you own the house and the land it stands on. With leasehold you own the property only for a fixed term set out in the lease; afterwards it reverts to the freeholder. Most flats are leasehold, but houses can be too. For a flat in London, always look at the remaining lease term, the service charges and the ground rent as well as the price.

Non-resident, second home, first-time buyer: which column is yours

For stamp duty you are non-resident if you spent fewer than 183 days in the UK in the 12 months before the purchase. Then you pay 2 percentage points more on every band, on top of all other rates. If after buying you do spend 183 days within a continuous 365-day period in the UK, you can reclaim the surcharge: the period must fall within the window from 364 days before to 365 days after the purchase, and you amend the return within two years.

The second surcharge surprises most people: 5 percentage points for each additional dwelling. HMRC counts every residential property worth £40,000 or more that you own anywhere in the world, wholly or partly. Your flat in Amsterdam, Copenhagen or Brussels counts. Spouses and civil partners are treated as buying together, even if only one of you buys. The exception: you are replacing your main residence and have sold the old one. If you sell it later, you get a refund if the sale follows within three years.

An example: you live abroad, own your home there and buy a cottage for £400,000. You pay 7 percent on the first £125,000 (£8,750), 9 percent on the next £125,000 (£11,250) and 12 percent on the remaining £150,000 (£18,000), £38,000 in all. A buyer living in the UK who owns only this one house pays £10,000 for the same cottage.

First-time buyers pay no SDLT up to £300,000 and 5 percent on the part up to £500,000; above that the relief falls away. It only applies if all buyers are first-time buyers. As a non-resident the 2-point surcharge applies here too.

Buying through a company: 17 percent and an annual charge

If a company buys a residential property over £500,000, a flat rate of 17 percent applies to the whole price, 19 percent for buyers from abroad. Relief exists for property rental businesses, developers, traders and some other cases where the conditions are met. Even a UK company can count as non-resident if it is controlled by people outside the UK.

On top comes the Annual Tax on Enveloped Dwellings every year, paid by companies on residential property over £500,000 unless a relief applies. What it costs and when it falls away is on our page on ATED. A foreign company must also register with Companies House on the register of overseas entities before buying. More in buying property through a company.

What a house in England costs, and how to finance it

Affordable and England can go together, depending on the region. According to the official UK House Price Index, a property in England cost £293,000 on average in August 2026. The range is wide: £166,000 in the North East, £304,000 in the South West with Cornwall and Devon, £554,000 in London.

Running costs include council tax. For a holiday home nobody lives in permanently, the council may charge up to double the normal council tax. Check with the local council before you buy.

On finance, honestly: UK banks look at income, outgoings and your UK credit history. Without UK income and credit history the choice narrows and the terms are rarely the best. So plan with equity or finance from your bank at home, and see a UK mortgage as a bonus, not the foundation. A UK account is handy for council tax, electricity and water; how to open one from abroad is in a UK bank account as a non-resident.

Budget 2026: what new owners need to know now

The Budget of 28 October 2026 settled two changes that can affect any owner in England. Both are announced and are to become law with the Finance Bill 2026-27; the law is not yet passed.

First, the High Value Council Tax Surcharge: an annual charge on homes in England worth £2 million or more in 2026, on top of council tax. The owner pays, not the tenant. The bands: £2,500 from £2 million, £3,500 from £2.5 million, £5,000 from £3.5 million and £7,500 from £5 million. You see the provisional banding in autumn 2027; the first bills arrive in March 2028. If the house stands largely empty and unfurnished for twelve months or more, the charge doubles.

Second, tax on rental income. From 6 April 2027 property income has its own rates: 24, 44 and 49 percent instead of 20, 40 and 45 percent. Budget 2025 announced two points; Budget 2026 adds two more. The rates apply in England, Wales and Northern Ireland. What that means for you as a landlord abroad is in letting as a non-resident landlord.

Sources: GOV.UK: Stamp Duty Land Tax; HMRC: Rates of Stamp Duty Land Tax for non-UK residents; HMRC: Higher rates of Stamp Duty Land Tax; HMRC: Stamp Duty Land Tax, corporate bodies; GOV.UK: Buying a home; GOV.UK: Leasehold property; HM Land Registry: UK House Price Index for August 2026; HM Treasury: Budget 2026, Overview of tax legislation and rates, Annex A; HM Treasury: High Value Council Tax Surcharge; Companies House: Register an overseas entity