Buying UK Property From Singapore

There are many benefits to investing in the UK property market as an international investor, here are some of the most important ones:

• The UK is far more affordable than Singapore property due to more space, higher numbers of properties on the market and a more stable economy. The average price of landed properties (the most desirable form of property in Singapore) is currently around £2,080,533. The UK’s average property price as of October 2023 is £287,782, much lower than Singapore’s average price!
• High tenant demand and a low supply of rental properties mean that rents are rising in the UK, so inventors earn more rental income. Homelet’s Rental Index indicates that the average rent in the UK is currently £1,279 as of November 2023.
• By choosing some of the best places to invest in the UK, you can achieve high rental yields to maximise your returns. Cities like Liverpool and Manchester can offer you yields of up to 8%, while other areas like Birmingham and London have the potential for strong returns.
• Property values in the UK are growing rapidly, with house prices hitting a record high in November 2022. Areas like the North-West are expected to have growth of 20.2% by 2028, as stated in a forecast by Savills. By comparison, Singapore’s house prices grew at the slowest rate in two years in the last quarter of 2022.
• The UK housing market is famous across the world for its stability, with investment properties being far more secure than other forms of investment due to them being physical assets. Recent events such as Brexit, the COVID-19 pandemic and the cost of living crisis did little to slow the growth that the housing market has shown.

These are just some of the benefits of investing in the UK from Singapore, and there are many more besides this.

Our guide on property investment has more information if you want to learn more about the UK buy-to-let market and why it is currently thriving.

There are a few different taxes that you pay to the UK government that you need to be aware of if you are looking to invest in UK property from Singapore.

One of the main ones you need to be aware of when buying UK property from Singapore is Stamp Duty Land Tax or SDLT. This tax is a percentage of the value of the property added onto the price of the sale, which differs depending on how much you are buying the property for.

Once you are collecting rental income, you will also need to pay Income Tax on what you collect from your tenants.

If you choose to sell your investment property and find it has risen in value, which is likely given how property values have grown for the past two years, you will need to pay Capital Gains Tax on the profit you make from the purchase price.

Also, if you decide to pass on your property to your next of kin, they will be charged an Inheritance Tax on the part of the estate over the minimum threshold, unless they choose to live in the property.