Living in the United Kingdom: Complete guide to buy a house in England

This guide explains the full process of buying a house in the United Kingdom, including costs and places to find properties for sale in the United Kingdom.

There are many types of real estate to buy in the United Kingdom;Many of those who settle there choose to buy rather than rent.Prices vary considerably from one country and from one region to another, but ... mortgage loans in the United Kingdom are available for those who can afford it.This guide on the purchase of a house in the United Kingdom addresses the following points:

Home ownership in the United Kingdom

52.8 % of families in the United Kingdom own their housing, according to data from the latest statistics 28.2 % own their housing and 24.6 % have a mortgage loan.This figure is lower than the EU average but higher than that of European countries like Germany, France and Switzerland.The home ownership in the United Kingdom increased at the end of the 20th century thanks to the right-to-buy program (right to buy) introduced in the 1980s, within which the tenants of the municipal council had thePossibility to buy their house at a reduced price.The average age of first-time ancients has increased in recent years, mainly due to the increase in housing prices.According to the Institute for Tax Studies, home ownership among young adults has more than half reduced in the past 20 years.

Should you rent or buy a house in the United Kingdom?

If you plan to stay in the United Kingdom in the long term or if you are sure to be in a particular region, the purchase of a house or an apartment in the United Kingdom can be a possible solution, especially if the'We take into account record interest rates on mortgage loans in recent years.

However, rental in the United Kingdom can be a better choice for foreigners who intend to stay only a few years;It may be more difficult to recover stamp duties and other short -term costs, as well as potential rental fees.capital gains tax from 18 to 28 % if you sell.Rental also allows newcomers to get an idea of the different districts and be able to make a quick offer.Read the Expatica guide for more information on rental in the United Kingdom or Rental in London.

Can expatriates buy a house in the United Kingdom?

There is no legal restriction on the purchase of property by expatriates in the United Kingdom.Foreigners and non-residents can also obtain a mortgage in the United Kingdom.However, those who have less than two years of residence in the United Kingdom and who do not have a job can be faced with stricter requirements and a greater deposit.Consult this guide for mortgage loans in the United Kingdom for more information.You will have to appoint a notary or a British real estate agent to deal with legal formalities when buying a house in the United Kingdom.

In general, the same taxes apply to real estate and income-related income for non-residents as for British residents.The stamp law is paid at the same rate and the capital gains tax will be paid at the same rate if the property is sold with a profit.If you are a non-resident owner of a British property, you will have to pay rental income tax under the same conditions as resident owners, although you can benefit from an exemption if you pay the tax on this incomein your country of origin and that the latter has concluded a double taxation agreement with the United Kingdom.See this Guide to Taxes in the United Kingdom for more information.

The British real estate market and real estate prices

Uncertainty has reigned on the British real estate market since the Brexit vote in 2016, although the average price of houses across the United Kingdom has been quite stable and is currently around 1.5 million euros.£ 228,000.House prices are higher in the United Kingdom than everywhere else in the European Union;Average costs per square meter are as follows € 23.93.This amount is almost double that of the following country, France, with € 12.80.The prices in London are higher than in the other large cities, the overall average being currently £ 473,822 (£ 912,343 for a detached house, £ 411,950 for an apartment).The overall average costs for the other major cities are: Manchester: 193,415 £;Edinburgh: £ 292,644;Cardiff: £ 250,618;and Belfast: £ 159,562.

Costs of purchase of a house in the United Kingdom

The costs associated with the purchase of a house in the United Kingdom can be divided into two parts: initial costs and permanent costs.

Initial costs to buy a house in the United Kingdom

They understand :

Permanent costs of buying a house in the United Kingdom

These costs include:

Financing of a real estate purchase in the United Kingdom

Mortgage loans in the United Kingdom

If you need help to finance the purchase, non -British nationals can get an investment loan from a bank or a mortgage broker.International banks such as HSBC also offer English services.Most mortgage lenders offer different types of fixed rate and variable rate loans.They ask you to build a deposit, which is generally between 5 and 40 % (generally higher for non-residents).It is also possible to obtain a mortgage abroad on existing assets, but this can have tax consequences.Folder fees also vary from one lender to another, but may include reservation costs of the mortgage and the fees for the completion or completion.To find out more, consult our guide on mortgages in the United Kingdom.

UK assistance regimes

The British government has introduced purchase assistance to help potential owners to take the necessary steps for the purchase of a home in the United Kingdom.Social housing tenants have the right to buy their accommodation if they have been tenants for at least three years.The government also offers a series of easy -to -use calculators on its website.Money Advice Service which can help you determine what you can afford and the probable monthly cost of a mortgage loan.

Find a property in the United Kingdom

Houses for sale in the United Kingdom are most often listed by real estate agencies and on their websites, on online real estate websites and in newspaper classifieds.You can also find properties for sale during auctions and exploring specific areas, looking for the panels "for sale" outside the properties and by contacting the real estate agent with which the house is listed.Whatever you find the ad, it generally contains the contact details of the private seller or its real estate agent.

By doing a search on the Internet, you will find many online properties websites that offer properties for sale in the United Kingdom, and you can also get more details on the search for properties via the Expatic site.find a house looking to buy a house in the United Kingdom.

Real estate agents in the United Kingdom

Real estate agencies, or simply real estate agents as they are commonly called in the United Kingdom, are the usual method for the search for a house.They adapt their research according to your specifications, have in -depth knowledge of the region and generally have a greater variety of ads.They can also organize visits on your behalf, and help you negotiate the price and purchase procedures.

When you buy a house in the United Kingdom through a real estate agency, it is important to ask what its services include.Many British real estate agents offer lawyers and mortgage loans that can make the process faster and less complicated, but you can also go around the market to find the expertise that suits your situation and toyour budget.The fees of real estate agents are generally invoiced to the seller, so you should not have to pay them for general services if you buy, although some can charge additional services.Check the costs you may incur.

There are a wide range of real estate agents in the country from which you can choose.Most are local businesses that operate in specific areas and regions, so you will have to do research to find the real estate agent that suits you.However, there are an increasing number of online and national agencies, in particular:

On websites like Rightmove you can compare the properties of several agents, filtering by price, location, etc..You can register with several real estate agents in the United Kingdom at the same time.They must be members of the National Association of Real Estate Agents.

Visit and choose a property

You can visit either directly with the seller or through a real estate agent.These visits are made by appointment and, in the case of an agent, you will normally have to meet him either at the address of the property or at the agent's office.To get the most out of a visit, make a list of elements to check and questions to ask.You can visit a good several times and it is wise to visit it at least twice;It is best to go there at different times of the day (day and night).Some real estate agencies offer online distance visits, which is useful for people abroad or having a busy schedule.However, these visits will not give you the same depth of information on the good as a visit in person.If you cannot attend a person visit, try to ask a friend or a colleague to visit her on your behalf.

House purchase process in the United Kingdom

The process of buying a house in the United Kingdom generally takes 2 to 3 months.This can be longer if you are part of a chain of buyers and sellers who await the purchase or sale of other properties.

Before you start looking for a house, you should make an estimate of your finances to know what you can afford, whether it is a mortgage or your own capital.This will also save you unnecessary delays once your offer has been accepted, or if you have to make a quick gesture to get your ideal home.Here are the main steps to follow once you have found a property you want to buy in the United Kingdom.

Make an offer

Once the finances are in place, you can make an offer on a British property, which can be done orally or in writing through a real estate agency or directly with a private seller.Once the offer has been accepted, the seller writes the contract for the transfer of legal property.In England, Wales and Northern Ireland, the offer is not legally restrictive as long as contracts are not exchanged.However, the standard purchase process of a property differs in Scotland, where the offers are communicated through a notary.Visit the Scottish Government website for more detailed information on the purchase of real estate in Scotland.

You can offer a lower or higher price for the price requested when you make an offer.Take into consideration the time elapsed since the property is on the market.Consider speaking with the real estate agent or another real estate advisor.In the United Kingdom, properties are often sold at a price lower than the price requested, but you may be beaten by another buyer if your offer is low.

Engage a lawyer

You will need a lawyer to carry out the legal procedures related to the sale.Approved lawyers and legal advisers can be found on the Law Society website.Lawyers' fees may vary, many of them billing at an hourly rate.In general, they are between £ 500 and 1,500, plus VAT, for work concerning the sale of real estate.The lawyer represents you throughout the procedure for buying a house.It checks to local authorities if there are town planning problems likely to affect the value of the property.

Get a study

Your mortgage lender organizes an assessment of the property.However, you may want to order a property study that takes into account the potential maintenance and repair costs.You will have to pay the expertise, but it can save you long -term money if it identifies problems that allow you to reduce your initial offer.There are different types of expertise, including:

You can compare the quotes of real estate experts in your region through the RICS search tool tool.

Finalization of the offer and mortgage

If you order a study and reveal problems, renegotiate the price in light of new information.If you request a mortgage loan in the United Kingdom you may also have to renegotiate if the study assesses the property at a lower price, as your mortgage provider will probably reduce the amount it is ready to lend.Once you have finalized the offer and it has been accepted, you will have to pay the deposit and finalize your mortgage loan.

Note: this is the last chance you have to withdraw from the sale before the contracts are exchanged.Your mortgage lender will give you 7 days to accept the mortgage loan offer.You can cancel after signing the mortgage, but you will lose the initial costs for the mortgage costs.

Contract exchange

If there is no problem, you will receive the seller's notary contract to sign it and conclude the sale.Check the details of the contract with your notary and request changes if necessary.Once you are satisfied with the contract, you can sign it.This means that you agree to make the sale.The contract must include all the essential details, such as the price and the date of completion, as well as all the conditions of the sale.

Conclusion of the sale and final arrangements

Once the contracts have been signed, the sale money is transferred from the account of your notary and your mortgage credit supplier to the account of the notary of the seller.This is when you will receive the keys to your new house.You will now have to pay the mortgage fees and notary fees.Your lawyer must register the sale with the land register and pay any stamp right (these costs will normally be added to your legal bill).

Move into your property in the United Kingdom

Subscribe to an insurance

If you contract a mortgage loan or if you buy a property to rent it, you will have to take out building insurance that will protect you against damage caused to good by elements such as fire and floods.You can also take out home content insurance to protect your furniture and goods.Many insurance companies offer combined home insurance that covers both the building and all its content.Consult our Insurance Guide in the United Kingdom for more information on the available forms of insurance.

Public and telecommunications services

Once you have moved, you can pay connection to public services in the United Kingdom such as electricity, water and gas.If they are already connected, you can transfer them to your name.The choice of your new energy or internet provider is quite simple thanks to the many comparison sites of the United Kingdom.Sites like Uswitch and Moneysupermarket allows you to easily compare suppliers and make sure you get the best offer for you and your family.

However, many people in the United Kingdom choose to stay with the same gas and electricity supplier as that of their former home;They just have to change the address of their account.The same goes for television, the Internet and the landline, because many suppliers offer packages including the three, and it is therefore generally easier for people to keep their existing package.For more information, see our guide on configuring television, telephone and the Internet in the United Kingdom.

Housing tax

All residents of the United Kingdom, whether owners or tenants, have to pay housing tax on their accommodation.Inform your local authority as soon as you move;It will send you a municipal tax bill for the year.Costs are linked to the value of your property and people living alone benefit from a reduction of 25 %.

Buy land to build a new property in the United Kingdom

If you don't want to buy an existing house in the United Kingdom, another option is to have your own home built.About 13,000 people do it each year in the United Kingdom.You will have to buy land with a building permit.You can find it online, with certain real estate agencies and local advice.The costs vary but, as an indication, the cost of the land can represent between 30 and 50 % of the total value of the house completed and the construction costs approximately 30 to 40 % of the total value.Most available land is located on industrial wasteland (land already fitted).You can search for land available on websites such as the following Plotbrowser and Plotfinder.

Buy a new house in the United Kingdom

The British government is committed to building 300,000 new housing per year by the mid -2020.It also offers purchase incentives for people under the age of 40.Buying a new house in the United Kingdom can be an attractive option.All the elements of the property are new and benefit from a 10 -year warranty against structural defects.In addition, if you buy on plan, you can choose certain aspects of design.

However, there are drawbacks such as potential delays in the completion of construction work and it may be more difficult to obtain a mortgage for a new construction with certain lenders.You will also have to pay attention to the faults, which can be resolved if the sales team is informed at the time of the sale.The procedure for purchasing new construction and obtaining a mortgage loan is almost the same as for a property already built.Most new constructions are rental rather than in full ownership, which means that you own the building but not the land on which it is built and that you may have to pay an annual fee for the land.If you buy a new rental construction, check that it is not subject to a lease contract.Land rent doubling clause.

Sell property in the United Kingdom

You can sell a house you have in the United Kingdom at any time.However, if you have a mortgage loan and you are in a negative equity situation (that is to say that the value of the house is less than the amount of the mortgage), you must support these losses yourself.You can sell your house in private or through a real estate agent (street or online agent), but you will have to pay the fees of the real estate agent if you use one, as well as the fees of alawyer acting in your name throughout the sale.Consult our guide to the sale of property in the United Kingdom for more information.