As in any real estate, Investing in UK real estate has its peculiarities. For non-UK investors this can be even more complicated. We have listed the most frequently asked questions (UK real estate FAQ).
The UK law makes a difference between residential real estate and commercial real estate. This has effects on everything from permits to tax. The former is everything that is intended for general residential use. Flats, houses and apartments. The latter is all the rest, aimed at a specific use: hotels, care homes, shops, storage areas, student flats,…
Not only the legislator and the tax man make a distinction. Also the investors. Residential real estate is dependant on the fashion of the moment for the area, so can appreciate (and loose value) a lot faster. Location here is key. Commercial real estate is a lot more stable, as it value depends directly on the profit it generates, not whether the location is fashionable. So expect less variation in the price. For small-size investments (eg student flats, care homes, storage boxes, hotel rooms etc) there is often a pre-agreed rental fee and even exit included in the deal. Partner choice is key.
Some home countries will expect you to declare the income also at home. Many countries (among them most EU countries) have double income tax treaties to avoid paying tax again in the home country.
As I had gathered the experience of investing in UK as a foreign investor, I thought it might be interesting also for other investors: hence UK-realestate.com.