Kingdom is cca. 66 million inhabitants
Real Estate Market of Britain
House prices in Britain or the United Kingdom (UK) are still rising, at least in nominal terms (i.e. not adjusted for inflation). But uncertainty over Brexit is clouding the market's prospects. The average house price in UK rose by 2.1% to £216,103 (US$ 279,227) during the year to Q3 2018, according to Nationwide - a slowdown from price increases of 2.2% in Q2 2018 and 2.5% in Q1 2018. However, when adjusted for inflation, house prices actually fell by 0.4% y-o-y. RICS's survey respondents were pessimistic that sales activity will pick-up in the coming months.
The highest price rise was in Yorkshire and Humberside, with house prices rising by 5.8% during the year to Q3 2018. It was followed by East Midlands (4.8%), Northern Ireland (4.3%), West Midlands (4.2%), and North West (4.1%).
Total roundtrip transaction costs range from 3.90% to 12.16%. Almost all buyers, UK-based or not,employ lawyers as well as real estate agents. Legal fees are around 0.5% to 1% while agent's fees arearound 2% to 3.5%, plus 17.5% VAT.
International Investment in Britain
A foreigner can legally buy and operate real estate in the UK. Britain is always a real estate option for an investor who wants to diversify his portfolio and enjoy a favourable economic trend.
The real estate market in England is favourable for transactions and investments for several reasons:
- A transparent and open system.
- The law is in favour of the owners and protects them.
- A foreigner can become owner in England.
- Taxation is favourable.
The European Union, England and other countries signed an agreement, allowing to avoid the double taxation on the rental income but also on the inheritances and the donations.