UK · city research
London
Zoopla's national average gross yield is 5.8%. London sits at roughly 5.4%, with much of the South East below 4% — the north–south divide is the dominant structural pattern.
London sits below the UK national buy-to-let average on gross yield
as of 2026-04 · source
Gross yield
Zoopla's national average is based on an average buy-to-let price of £270,045 and average rent of £1,301/month. Northern cities such as Sunderland, Aberdeen and Burnley exceed 8%; London is a lower-yield, higher-liquidity capital market.
Entry costs
A non-resident buying an additional dwelling pays standard SDLT bands plus a 5% additional-dwelling surcharge plus a 2% non-resident surcharge — a 7% uplift on every band. Effective bands become: 7% (to £125k), 9% (£125k–£250k), 12% (£250k–£925k), 17% (£925k–£1.5m), 19% (above £1.5m). Worked example: a £400,000 buy-to-let incurs SDLT of approximately £36,250 (9.1% effective) before legal costs.
Tax and ownership
Non-residents may buy freehold or leasehold residential property in England and Wales with the same title rights as residents. Under NRLS, the letting agent or tenant must deduct basic-rate tax (20%) from rent unless HMRC has approved gross-payment status. Section 24: individual landlords receive only a 20% tax credit on mortgage interest — higher-rate taxpayers can be loss-making after tax on leveraged stock.
Residency pathway
Buying UK property confers no immigration status. The Tier 1 (Investor) visa was closed to new applicants in February 2022 and has not been replaced with a property-linked route.
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