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Despite recent increases in stamp duty and the non-resident surcharge, UK property investment remains a strong and rewarding opportunity for UK expat and foreign national investors. With house prices continuing to rise and mortgage rates falling, the case for investing in UK property is stronger than ever.
UK Property Prices Are Still Growing.
According to February’s UK House Price Index (HPI), the average home is now £13,000 more expensive than it was a year ago. This indicates that confidence is returning to the market, likely as a result of interest rate reductions. ‘Despite a turbulent landscape in recent history, it’s clear from this that UK property continues to offer capital growth earnings, even in a higher-tax environment’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘That £13,000 annual gain alone can offset much of the increased stamp duty surcharge for overseas buyers.’
Mortgage Rates Are Coming Down for Expats.
One of the biggest boosts to the market in early 2025 has been the reduction in mortgage interest rates. Following two cuts in 2024 and another already this year, lenders are now offering more competitive mortgage deals for expats. Even major market lenders are offering sub-4% rates now. ‘This is a great time for UK expat and foreign national investors to get a mortgage’ says Stuart Marshall. ‘There is currently a price war breaking out between lenders as they try to battle for business. There are also more frequent cuts expected from the Bank of England this year as the economic turmoil continues in the face of Trump’s ongoing tariff project. However, despite projected further cuts to the base rate, it’s not advisable for UK expat and foreign national investors to wait as there’s no guarantees of further cuts and many fixed rates are already factoring in cuts further down the line.’
‘UK expat and foreign national borrowers stand to benefit more than other groups of buyers, with higher relative salaries allowing them to increase their deposits more than domestic buyers. Lower mortgage pricing helps to balance out increased purchase costs of property, especially for UK expat and foreign national borrowers who are working with a specialist broker like Liquid Expat Mortgages, which offers exclusive expat mortgage products with flexible terms.’
Why UK Property Is a Hedge Against Inflation.
Inflation is expected to rise again in April due to tax changes and cost-of-living increases. That’s another reason why investing in UK property is smart – because rental yields often rise with inflation, giving landlords steady and increasing income. Unlike stocks or savings, property investment in the UK provides tangible assets that hold value and produce income, even during economic fluctuations.
And while the 2% non-resident stamp duty surcharge and higher rates on second properties will add to upfront costs, investing in UK property has far more positives than negatives. ‘The costs of the stamp duty surcharge are not ideal, but they’re manageable – and they haven’t stopped demand. With the right financial structuring and advice, expats can still build a profitable UK property portfolio, and this is why the extra charges haven’t slowed down the numbers of UK expat and foreign national investors. Put simply, the long-term gains far outweigh the short-term costs.’
It’s a Great Time to Invest in UK Property.
With property values rising steadily, falling mortgage rates, and high rental demand in key UK cities, there is confidence returning to the UK expat and foreign national investment market. With the right strategy, buying UK property as an expat in 2025 is still an excellent investment, especially for those investors who partner with a leading expert mortgage broker. Liquid Expat Mortgages help UK expat and foreign national buyers to access the UK property market with ease. From competitive mortgage products to expert advice on tax and finance, Liquid Expat Mortgages is here to help you succeed.
Contact Liquid Expat Mortgages today for a free consultation and find out how to start investing in UK property.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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+44 161 633 5009
Disclaimer:
The content of this article is provided for informational and illustrative purposes only and is not intended as financial, legal, or tax advice. Liquid Expat Mortgages is authorised and regulated by the Financial Conduct Authority (FCA) to provide mortgage and protection advice. However, the FCA does not regulate certain investment mortgage contracts, and any views expressed herein may include unconventional or contrarian perspectives that do not necessarily reflect standard industry practices or regulatory guidance. Your home or property may be repossessed if you fail to keep up repayments on a mortgage or any other debt secured against it. We are not authorised to provide legal or tax advice, and we strongly recommend consulting a qualified professional for personalised guidance tailored to your circumstances before making any financial decisions.
