How the London market actually works, and why it catches so many relocators off guard.
Renting and buying in London both work differently for newcomers than they do for people with an existing UK credit history and a UK employer behind them. Here's where that difference actually shows up.
Many relocators default to renting for the first year "to get settled," but for some situations — visa length, family needs, market timing — buying sooner can make more sense. The right call depends on your specific circumstances.
In many countries, buyers are used to having their own dedicated agent — someone whose only job is to represent their interests in a negotiation. In the UK, most estate agents legally represent the seller, not the buyer, even when they're the one showing you the property. That distinction matters a lot in a market as competitive and procedurally complex as London's.
Worth knowing before you start viewing. If you're used to having a buyer's agent back home, that relationship doesn't exist by default in the UK — you have to hire one separately.
If you're moving from Canada specifically, the Canada vs UK comparison walks through all ten of these differences side by side with what you already know from home.
Stamp Duty, as a newcomer. SDLT is tiered — you're taxed only on the slice of the price that falls in each band, not the whole price at one rate. These are the standard bands for a main residence:
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001–£250,000 | 2% |
| £250,001–£925,000 | 5% |
| £925,001–£1,500,000 | 10% |
| Over £1,500,000 | 12% |
Two surcharges stack on top of these bands if either applies: an additional +5% across all bands for a second home or investment purchase, and a further +2% across all bands if any buyer spent fewer than 183 days in the UK in the 12 months before completion. First-time buyers purchasing a main residence under £500,000 pay 0% up to £300,000 and 5% between £300,001–£500,000 instead of the standard bands.
What that means on a £1,500,000 purchase — a UK resident buying their main residence pays £93,750 total (an effective rate of 6.25%), while a non-resident buying a second home or investment property pays £198,750 (an effective rate of 13.25%), since the surcharges apply on top of every band, not just the excess.
Mortgage lending, as a newcomer. Terms differ sharply depending on whether you're living in the UK under a visa or buying from abroad as a non-resident:
| Living in UK on a visa | Buying from abroad | |
|---|---|---|
| Typical deposit | 15–25% (75–85% LTV) | 25–40% (60–75% LTV) |
| Minimum income | Standard affordability, or £50k+ without ILR | Often £75k+ or foreign equivalent |
| Credit check | UK credit history required | International credit / private bank review |
| Lender pool | Mainstream high-street banks | Offshore desks & private banks |
Visa status changes the terms directly. Indefinite Leave to Remain or settled status gets near-identical terms to a UK citizen, including low-deposit (5–10%) high-street products. On a standard work or family visa, high-street lenders typically want 12–36 months of UK residency already behind you and 6–24 months left on the visa — without three years of UK residency, maximum LTV is often capped at 75%. On a visitor or short-term visa, standard residential mortgages generally aren't available at all; purchases go through cash or offshore/private banking instead.
Two more things worth knowing early: lenders apply a 10–20% "haircut" to non-GBP income to stress-test against currency swings, and UK Anti-Money Laundering rules require an unbroken paper trail for foreign deposits — typically 3–6 months of statements showing where the money actually came from. Starting a UK bank account and a UK credit footprint the day you arrive, not at exchange, is the single easiest way to avoid delays on both the mortgage and the AML checks.
This is exactly the gap London Residential Advisors is built to close — representation that works only for the buyer, for relocators navigating this market for the first time.
Content for general guidance only — not legal, tax, or immigration advice. Confirm current rates and rules before relying on them.