Buying property in London: how it works

From offer to completion

In England, offers are made through the estate agent and are “subject to contract”: neither side is bound until contracts are exchanged. Your solicitor or licensed conveyancer carries out searches and checks the title, while you arrange a survey and finance. At exchange you pay a deposit, usually around 10%, and the sale becomes binding; completion, when you pay the balance and receive the keys, follows on an agreed date.

Stamp Duty Land Tax

Stamp Duty Land Tax is payable on most property purchases in England, at rates that rise with the price. Surcharges apply to buyers of additional homes and to buyers who are not resident in the UK. Rates and reliefs change, so check the current figures on GOV.UK or with your solicitor.

Freehold and leasehold

Houses are usually sold freehold, while most flats in London are leasehold: you own the flat for a fixed number of years and pay ground rent and service charges to the freeholder. Check the length of the lease and the charges carefully, as short leases can affect value and mortgages.

Buying from abroad

Foreign buyers can purchase property in England. Expect strict anti-money-laundering checks on your identity and source of funds, and the non-resident Stamp Duty surcharge. Take advice from a solicitor and a tax adviser in both countries before you buy.

Where people buy

Prime central London includes Mayfair, Marylebone, St James’s and Westminster, as well as Belgravia, Knightsbridge, Chelsea and Kensington. See our neighbourhood guides; we do not publish price estimates.

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