Buying a Home in London as an American: What to Know After the 2026 Midterms

Americans can buy property in London freely, with no restrictions on foreign ownership. What catches US buyers out is the cost and the process, not access: stamp duty surcharges of up to 7 percentage points, US tax that follows you abroad, and a system where the seller's agent works for the seller, not for you.

Why Americans are asking now

Democrats won control of both the House and the Senate in the US midterms on 3 November 2026, according to race calls by the Associated Press (NPR). Whatever the result means for policy, big political moments tend to prompt the same practical question in families with international lives: where do we want a home, a second base or part of our wealth? For many Americans, London and the English countryside are already on that list.

This guide is not about politics. It covers the practical side: what buying here actually involves, so you can make a calm decision whatever the headlines say.

Where Americans tend to buy

In our experience the search usually starts in Notting Hill and Holland Park, St John's Wood and Hampstead, with Chelsea, Kensington, Mayfair and Belgravia for those who want to be central. Country homes in the Cotswolds and Surrey are almost always second homes, used for weekends and summers. Serviced, lock-up-and-leave apartments suit those who will spend only part of the year here. For more on the draw of both, read why London and the Cotswolds capture American buyers.

The costs to plan for before you fall for a house

• Stamp Duty Land Tax. Standard rates in England rise to 12% on the portion above £1.5m (GOV.UK).
• A 5% surcharge if the purchase leaves you owning more than one residential property anywhere in the world, unless the new home replaces your main residence. This catches most Americans who keep a home in the US (GOV.UK).
• A 2% surcharge if you were in the UK for fewer than 183 days in the 12 months before the purchase. It applies on top of all other rates, including the 5%. You can reclaim it if you spend at least 183 days in the UK in any continuous 365-day period between a year before and a year after the purchase, claiming within two years (GOV.UK).
• Together that means rates as high as 19% on the slice of the price above £1.5m (GOV.UK). Model the full cost with a UK solicitor before you offer.
• Running costs. From April 2028, owners of homes in England worth £2m or more will pay a High Value Council Tax Surcharge of £2,500 to £7,500 a year, on top of council tax (GOV.UK). See our mansion tax guide.

US tax still follows you

US citizens are taxed on their worldwide income wherever they live. That is one reason the end of the UK's non-dom regime changed less for many Americans than for other international buyers. It also means a London purchase needs advice on both sides of the Atlantic: how you own the home, how you fund it, and what happens when you sell.

• On a sale, UK capital gains tax on residential property is charged at 18% or 24%, including for US owners. Relief may be available where the home has been your main residence (Charles Russell Speechlys). The US may tax the same gain, with credit usually given for UK tax paid; take advice on how the two interact.
• Mortgages. Many UK lenders are cautious about lending to US citizens because of US reporting rules, so specialist lenders and private banks do much of this business.
• Get your US and UK tax advisors talking before you exchange contracts, not after.

How the UK process differs from what you know

• No MLS. There is no single shared listings database. Homes are spread across portals and agents, and many of the best at the top of the market are sold privately, off market.
• The seller's agent works for the seller. In England, the agent you meet at a viewing represents the seller. If you want someone on your side, you appoint a buying agent or advisor yourself.
• Nothing is binding until exchange. An accepted offer can still fall through, and a seller can accept a higher offer from someone else (gazumping) until contracts are exchanged. Speed and certainty matter.
• Expect identity and funds checks early. UK agents and solicitors must check your identity, source of funds and source of wealth under anti-money laundering rules. It is routine, not a sign of suspicion, and having the paperwork ready speeds things up.
• Freehold and leasehold. Many London flats are leasehold, so the length of the lease and the service charges matter as much as the price.
• Expect discounts, but not everywhere. In Q3 2026, 82% of prime London sales went through below asking, at an average discount of 10.3% (Coutts/LonRes). The best homes on the best streets still attract competition.

Rent first, or buy now?

Many American families rent for six to twelve months to learn the neighbourhoods and the school runs before committing. That is sensible if you are relocating for work. If you already know London, a market where prime values sit 14.7% below their 2014 peak and most homes sell below asking gives patient buyers room to negotiate (Coutts/LonRes). Either way, decide first what the home is for: a family base, a pied-à-terre or a country retreat. The right area follows from that.

My view

Treat a London home as a long-term decision, not a reaction to one election night. Do the tax work early, understand the full purchase cost, and have someone in your corner who knows which homes are quietly available. The Americans who buy best here arrive prepared and move decisively when the right home appears.

Sources

1. NPR, Democrats win full control of Congress (4 Nov 2026)
2. GOV.UK, Stamp Duty Land Tax residential rates
3. GOV.UK, Rates of SDLT for non-UK residents
4. GOV.UK, High Value Council Tax Surcharge
5. Charles Russell Speechlys, UK tax considerations for US persons relocating to the UK
6. Coutts, London Prime Property Index Q3 2026 (9 Nov 2026)

Frequently asked questions

Can Americans buy property in London?

Yes. There are no restrictions on Americans or other foreign nationals buying property in the UK. You will pay extra stamp duty if you are not UK resident or will own more than one home.

How much stamp duty does an American pay in London?

Standard rates in England go up to 12% on the portion above £1.5m. Buyers who will own more than one home pay a 5% surcharge, and non-UK residents pay a further 2%, which can mean up to 19% on the top slice. The 2% can be reclaimed if you spend 183 days in the UK within the qualifying period, so take advice from a UK solicitor before you offer.

Where do Americans buy in London?

In our experience, the search usually starts in Notting Hill, Holland Park, St John's Wood and Hampstead, with Chelsea, Kensington, Mayfair and Belgravia for those who want to be central. The Cotswolds and Surrey are popular for second homes.

Do I need a buying agent in London?

In England the estate agent works for the seller. A buying agent or advisor represents you, can find homes that are sold privately and negotiates on your behalf, which matters more in a market with no shared listings database.

Do Americans pay US tax on a London home?

US citizens are taxed on worldwide income, so a London purchase and any later sale need advice from both US and UK tax advisors. UK capital gains tax applies to US owners on a sale, with relief possible on a main residence.