Across the Pond: Unpacking UK Investment in U.S. Real Estate – Why Brits Bought $2 Billion of U.S. Real Estate

FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate

You know, there’s always been a special connection between the United Kingdom and the United States. I mean, I’m British and I’ve bought over 120+ rental properties in the USA. A lot of my clients are also from the UK. Beyond our shared language and cultural ties, this bond extends deep into the world of real estate.

As an international buyer representative, I’m seeing more and more interest in U.S. real estate from across the pond. It’s no surprise, then, that the UK consistently ranks as one of the top foreign investors in U.S. residential property. Let’s dive into why British investors are drawn to the U.S. market and what they’re typically looking for.

Investment Properties: Browse Turnkey Rental Properties For Sale in Our Online Portal

A Familiar Face: The UK’s Presence in the U.S. Market

The National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report confirms what I often observe in my practice: the UK interest in U.S. real estate is a significant (and growing) force.

British investors accounted for 4% of all international residential purchases – buying $2 billion of residential real estate in the U.S. over the past year, firmly placing them in the top five countries of origin. This isn’t a new phenomenon; the UK has a long history of investing in U.S. property, drawn by a market that often feels both familiar and full of opportunity.

Related: Foreign Investment in U.S. Real Estate up 33.2% in 2025

Why the U.S. Appeals to UK Investors

So, what makes the U.S. such an attractive destination for investors from the United Kingdom? here’s what the NAR report tells us…

• Market Stability: The U.S. real estate market is generally seen as robust and transparent, offering a sense of security for investments.

• Strong Property Rights: Clear and enforceable property laws provide a level of protection that appeals to global investors.

• Potential for Appreciation: Many U.S. markets offer promising long-term growth potential, which is a key driver for investment.

• Diverse Opportunities: From the sunny beaches of Florida to the bustling energy of New York and the expansive markets of Texas or California, the U.S. offers an incredible variety of locations and property types to suit different investment goals, lifestyle preferences, or even retirement plans.

These factors combine to make the U.S. a compelling choice for UK investors looking to diversify their portfolios or find that perfect overseas property. Here’s what I’m hearing in the conversations I’m having with UK investors more recently:

• Regulation: A recent increase in restrictive regulations for UK landlords is making the business more risky and less profitable. It’s harder and more expensive to end tenancies or evict bad tenants than ever before

• Tax: Taxes for UK buy to let investors have shot up recently. Higher stamp duty, and fewer deductions from taxable income (like mortgage interest) make the while prospect of owning rental property in the UK less profitable.

• Prices and Yields: Aside from a more restrictive business environment, house prices in the UK are less affordable than ever before. While that statement is also true in the U.S., rent to price ratios, cashflow, and house price appreciation are just better across the pond.

• Financing: UK landlords are finding it harder to secure financing, while in the U.S. the mortgage market has opened up significantly for foreigners, allowing British investors to leverage their properties and build portfolios.

With all that in mind, it’s little wonder that enquiries from UK citizens in our own business have tripled in the last 6 months. While investing overseas isn’t for everyone, the U.S. seems to offer a unique blend of familiarity and opportunity that is enticing to many.

Related: UK Buyers Guide: Everything You Need to Know About Buying U.S. Property From the UK

What the Data Tells Us

What UK Investors Are Buying

While the report doesn’t break down specific property types or locations *solely* for UK buyers, we can infer a lot by looking at the broader trends among international investors, which UK buyers are certainly a part of.

• Property Types: Globally, international buyers often gravitate towards detached single-family homes (60% of purchases) and condominiums (23%). It’s reasonable to assume many UK investors share these preferences.

• Intended Use: International buyers often purchase for primary residences, residential rentals, or vacation homes. Many UK buyers, for instance, might look for vacation homes in popular sunbelt states or investment properties in major cities.

• Financing: A significant portion of international transactions in the U.S. (42%) are all-cash purchases. This trend of strong liquidity is likely reflected among many UK investors too, offering a streamlined transaction process.

Most of my clients have purchased single family and small multifamily properties in the Midwest, Northeast, and Southern regional markets. We focus our acquisitions on more affordable property markets with string labour markets, population growth, and good rent-to-price ratios. About half of my UK clients buy their U.S. rental properties using a mortgage. The best options in most cases has been a DSCR loan that allows UK buyers to qualify without a U.S. income, credit, or social security number.

Related: U.S. Mortgages for UK Property Investors: Your Essential 2025 Guide

My Insights on Working with UK Investors

From my personal experience of buying my own rental properties in the U.S., working with of UK clients is often a smooth process due to the shared language, but it’s vital to remember that legal, tax, and even some cultural nuances can differ significantly.

What is standard practice in the UK could be very different in the U.S. That’s why the value of a buyer representative with international expertise becomes so evident. We’re here to bridge those gaps, explaining everything from the intricacies of U.S. property law to local market conditions and financing options for foreign nationals, ensuring your investment journey is as clear and straightforward as possible.

Related: The Foreign Buyers Snapping Up U.S. Real Estate in 2025

Frequently Asked Questions (FAQs)

How significant is UK investment in the U.S. residential real estate market?

The United Kingdom is a major player in U.S. residential real estate, ranking as one of the top five countries of origin for foreign buyers. UK buyers accounted for 6% of all international purchases in the past year, highlighting their consistent interest and investment in the U.S. market.

What makes the U.S. an attractive destination for UK real estate investors?

The U.S. market appeals to UK investors due to its perceived stability, strong property rights, and potential for appreciation. Additionally, cultural ties, a common language, and the diversity of property types and locations across the U.S. offer compelling opportunities for various investment goals, from vacation homes to long-term assets.

What types of properties and locations are popular among UK investors in the U.S.?

While specific UK buyer data for property types and locations isn’t detailed in the report, general international buyer trends suggest preferences for detached single-family homes, followed by condominiums. Popular destinations for global investors, which likely include UK buyers, often gravitate towards states like Florida, California, Texas, and New York, driven by lifestyle, investment potential, or existing communities.

What should UK investors consider when buying property in the U.S.?

UK investors should consider factors like navigating different legal and tax systems, understanding financing options for foreign nationals, and managing properties from afar. Working with a REALTOR® experienced in international transactions, especially one with a Certified International Property Specialist (CIPS) designation, can provide invaluable guidance and ensure a smooth process.