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Can I Buy UK Property From Hong Kong?

Investing From Overseas

It is definitely possible to buy property in the UK from Hong Kong, and this is a popular option for a lot of overseas investors from Hong Kong. If you are considering buying UK property from Hong Kong, it is important to do your research and seek professional advice.

There are a number of companies that specialise in helping foreign nationals buy property in the UK. They can help you find the right property, obtain a mortgage, and manage your investment. We at RWinvest are experienced in helping many Hong Kong investors find properties in the UK.

Why Should Hong Kong Investors Choose UK Property?

Here are some additional things to keep in mind if you are a Hong Kong resident looking to buy property in the UK:

  • You may be able to get a mortgage from a Hong Kong bank, but you will likely need to put down a larger deposit than a UK resident.
  • You may need to pay a higher interest rate on your mortgage.
  • You may need to provide additional documentation to the lender, such as proof of income and assets.
  • You may need to use a lawyer to help you with the purchase process.

It is important to note that the UK government has introduced a number of measures to cool the property market in recent years. These measures include increasing stamp duty on high-value properties and imposing restrictions on buy-to-let mortgages. As a result, it may be more difficult and expensive to buy property in the UK from Hong Kong today than it was a few years ago.

One of the main ways you will be taxed when buying UK property from Hong Kong is through Stamp Duty Land Tax.

Non-UK residents will have to pay a 2% surcharge on top of the typical stamp duty fee and, if purchasing a second property, a further 3% surcharge on top.

Any rent collected from UK property is also subject to Income Tax, and investors will need to pay Capital Gains Tax if and when they choose to sell their investment property.

Here are a few reasons why you should invest in UK property over Hong Kong:

  • UK property is much cheaper than Hong Kong property. In 2022, Hong Kong was crowned as the most expensive country in the world to buy property, reaching average prices as high as £1,500,000. As of 2023, UK properties are priced at a much more affordable level — around £280,000.
  • The UK housing market is known for reliability and stability, with a proven ability to endure tough times. During the pandemic, for example, the average property price skyrocketed in an investment boom that lasted well into 2022.
  • Buy-to-let investment properties are consistently popular within the UK property market, with high tenant demand and low supply levels leading to rising rents and more money for investors. 
  • Investors can see lucrative returns, depending on where they look within the UK. For example, affordable cities like Liverpool and Manchester can offer rental yields as high as 8%.