Everything you need to know about buying property in the UK
Buying property in England, Scotland or Wales means understanding Stamp Duty Land Tax (SDLT), the role of a solicitor, the difference between freehold and leasehold, and the specifics of a British mortgage. This guide covers everything in detail.
Stamp Duty Land Tax (SDLT): how does it work?
Stamp Duty Land Tax (SDLT) is the main tax when buying property in the UK. It is calculated in progressive bands: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1,500,000, and 12% above (rates in force since 1 April 2025). Unlike French transfer duties, SDLT works like income tax: only the portion above each threshold is taxed at the corresponding rate. For a £300,000 property, SDLT is £5,000 (2% on the £125,000 between £125,001 and £250,000, then 5% on the £50,000 above £250,000).
First-time buyer relief: significant tax savings
First-time buyers benefit from significant SDLT relief. If the property costs no more than £500,000, no SDLT is due on the first £300,000, then 5% applies only on the portion between £300,001 and £500,000. For a £450,000 property, a first-time buyer pays £7,500 instead of £12,500 at the standard rate, saving £5,000. This relief does not apply if the price exceeds £500,000.
The solicitor's role in a property purchase
Unlike France where a notaire is essential, in the UK a solicitor (or licensed conveyancer) handles the transaction. They conduct property searches (local authority, environmental and water checks), draft contracts, manage the transfer of title and register the sale at the Land Registry. Solicitor fees range from £1,000 to £2,500 depending on complexity. There is no regulated fee schedule as with French notaires.
Freehold vs Leasehold: a crucial distinction
In the UK, there are two types of property ownership: freehold (outright ownership of land and building) and leasehold (a long-term lease, typically 99 to 999 years). Flats are almost always leasehold, while houses are generally freehold. Leaseholders must pay annual ground rent and service charges. The recent Leasehold Reform Act aims to better protect leaseholders. Always check the remaining lease term: below 80 years, renewal becomes much more expensive.
Help to Buy and UK home-buying schemes
The UK government has launched several schemes to help people onto the property ladder. The Help to Buy Equity Loan (closed March 2023) offered a 20% (40% in London) government loan on new builds. The Lifetime ISA gives a 25% bonus on savings (up to £1,000/year) for 18-39 year-olds. Shared Ownership lets you buy a share (25-75%) and rent the rest from a housing association. The First Homes scheme offers 30% off new builds for local first-time buyers.
Non-resident surcharge: +2% SDLT
Since April 2021, non-resident buyers in the UK must pay a 2% surcharge on SDLT. This is added to the standard rates on each band. For a French person living in France buying a London property at £500,000, total SDLT would be £25,000 instead of £15,000 for a resident. A refund can be claimed if the buyer becomes a UK resident within 12 months of purchase. For buy-to-let properties, the 5% higher rate for additional dwellings (since 31 October 2024) also applies.
UK mortgages: how they work
A UK mortgage differs from a French loan in several ways. Typical terms are 25 to 35 years. Types include fixed rate (fixed for 2, 3 or 5 years, then variable), tracker (linked to the Bank of England base rate) and standard variable rate (SVR). Unlike France, mortgage insurance is not compulsory but strongly recommended. The maximum LTV (Loan-to-Value) is typically 95%, but the best rates require an LTV of 60% or less.
New build vs resale: fee differences in the UK
Unlike France where new builds have reduced notary fees, in the UK the SDLT is identical for new builds and resale. Zero-rated VAT on new residential construction means the listed price is the final price. Differences include slightly higher solicitor fees for new builds (~£1,800 vs ~£1,500), the 10-year NHBC warranty included with new builds, and no need for a survey on new property. Overall fee savings are therefore modest compared to France.
First-Time Buyer Schemes and Government Support in the UK
The UK government offers several schemes to help first-time buyers get on the property ladder. The Lifetime ISA (LISA) allows savers aged 18–39 to contribute up to £4,000 per year towards their first home, with the government adding a 25% bonus (up to £1,000 annually). The First Homes scheme offers new-build properties at a discount of 30–50% to local first-time buyers and key workers. Shared Ownership allows buyers to purchase a share (25–75%) of a property and pay rent on the remainder, gradually increasing their share through staircasing. For those purchasing homes up to £500,000, first-time buyers benefit from Stamp Duty relief with no tax payable on the first £300,000. Additionally, several lenders now offer 95% LTV mortgages backed by the government guarantee, enabling purchases with just a 5% deposit. Understanding these schemes can save first-time buyers tens of thousands of pounds.