Moving from the United States to London? How the housing market, timelines, taxes and neighbourhoods differ, and how a buyer-side adviser simplifies the move.
By Aldo Attanasio d’Aponte – September 9, 2026
Relocating from the US to London: a practical guide for buyers and renters
Moving from the United States to London is not difficult, but almost everything about the housing side of it works differently from what you are used to. The process is slower, the agents are not on your side, the tax bill on arrival is larger than you expect, and the best homes are rarely advertised. Understand those four things before you get on the plane and the rest is manageable.
Why do Americans keep choosing London?
The reasons have not changed much in the twenty years I have been doing this. A shared language and legal tradition, a time zone that lets you speak to New York in the afternoon and Hong Kong in the morning, a financial centre that still rivals Wall Street, and a city that is safe, green and walkable in a way few American cities are. The dollar has also been strong against sterling for most of the past decade, which makes a London price in dollars look more reasonable than it does to a British buyer.
Some of our American clients are corporate transferees on a two- or three-year posting. Others are entrepreneurs, families following a school place, or people simply buying a second base in Europe. The approach differs for each, and I would say the first decision is not where to live but whether to buy at all.
Should you rent first or buy straight away?
For most transferees the honest answer is rent first. London neighbourhoods do not have the sharp edges of American ones. Kensington runs into Notting Hill, Marylebone into Fitzrovia, and the character of a street can change in two hundred metres. A year in a rented flat teaches you which of those streets you actually want to own on. It also lets you time a purchase to the market rather than to a relocation date, which is often worth more than any negotiation.
The exception is a family with a fixed school and a long horizon. If you know you will be in St John’s Wood or Chelsea for ten years, buying early saves a second move and a second round of fees. Our relocation service exists for the first case, our acquisition service for the second, and it is not unusual for a client to use both in sequence.
How does the buying process differ from the US?
In the US you go under contract in days and close in a month or so. In England nothing is legally binding until exchange of contracts, which typically comes six to twelve weeks after an offer is accepted, and sometimes longer. During that gap either side can walk away. A seller can accept a higher offer from someone else, which is legal and known as gazumping. A buyer can simply change their mind. A large proportion of agreed sales in central London collapse before exchange for exactly these reasons.
There is no escrow, no title company and no buyer’s agent as standard. Estate agents are instructed and paid by the seller. Your solicitor does the conveyancing, your surveyor inspects the building, and if you want someone to represent your interests on price, access and negotiation, you appoint a buying agent. We act only for buyers, so there is no ambiguity about whose side we are on.
Most flats in London are leasehold, which has no real American equivalent. You are buying a long lease from a freeholder, often for 99 to 999 years, with a service charge and sometimes a ground rent attached. The lease terms matter as much as the property, and a short lease can be a bargain or a trap depending on the numbers.
What taxes will you pay?
Stamp Duty Land Tax is the big one. It is paid by the buyer on completion and is steeply banded. For a buyer who is not UK resident and already owns a home anywhere in the world, the top marginal rate in 2026/27 reaches 19% on the portion of the price above £1.5m, once the non-resident and additional-property surcharges are added. A UK-resident buyer replacing a main home pays materially less. The residence test for SDLT is a day-count over the year around completion, so timing your move can change the bill.
There is no annual property tax on the American model. Council tax is modest, usually a few thousand pounds a year. From April 2028 a new annual surcharge on homes in England valued at £2m or more is due to apply on top of council tax, in stepped bands, which buyers at that level should factor into running costs.
On the income and estate side, the UK replaced its old non-domicile regime in April 2025 with a residence-based system. New arrivals can benefit from a limited period of relief on foreign income and gains, and the rules on inheritance tax for long-term residents have tightened. Your US filing obligations continue regardless. None of this should be worked out after you have bought; we bring in the client’s tax adviser at the start and treat the purchase as one line on a wider balance sheet.
Rates and figures correct at the time of writing; confirm the current position before relying on them.
Which neighbourhoods do American families choose?
St John’s Wood is the obvious answer because of the American School in London, and it deserves its reputation: wide streets, detached villas, Regent’s Park on the doorstep. We have developed there ourselves. Notting Hill and Holland Park suit families who want garden squares and a livelier high street. Chelsea and South Kensington offer museums, good schools and the river. Hampstead is the choice for space and the Heath. Marylebone is the pick for a couple who want to walk to work in the West End.
I would add one caution. Americans arriving from a house with a yard often start by asking for a house with a garden in Zone 1, and then discover the price. A lateral flat in a well-run building, or a house one district further out, usually buys a better life than a compromised house in the core.
What else should you organise before you arrive?
Open a UK bank account early; it takes longer than it should. Expect landlords and sellers to ask for proof of funds and identity before any serious conversation, which is anti-money-laundering law rather than suspicion. If you need a mortgage, private banks lend to Americans more readily than the high street does, and they lend on the strength of the whole relationship, not just the property. Schools should be approached a year ahead where possible. And decide early whether you are buying as an individual, a couple or through a structure; the answer changes the tax and is very hard to unwind later.
How Arbitrage can help
We have advised private clients and corporate transferees on their move to London since 2006, acting only for the buyer or tenant. Our relocation service finds the right rental quickly and quietly, and our acquisition service takes over when a purchase makes sense, with 78% of the homes we secure never having reached the open market. We coordinate with your private bank, tax advisers and solicitors so that the housing decision fits the rest of your affairs.
Frequently asked questions
How long does it take to buy a home in London?
Allow three to six months from starting a search to holding the keys, and longer if the property is unusual or the chain is complicated. The legal stage alone, from accepted offer to exchange, usually takes six to twelve weeks. Off-market purchases with a prepared buyer can be faster.
Can a US citizen get a mortgage in the UK?
Yes. High-street lenders can be reluctant without UK credit history, but private banks lend regularly to American clients, often in exchange for assets under management. Expect a larger deposit than you would put down at home, typically 30% or more at the prime end.
Do I pay more stamp duty as a foreign buyer?
If you are not UK resident under the SDLT test at completion, a 2% surcharge applies across the bands, and a further 5% if you will own another home anywhere in the world. The surcharge can be reclaimed if you become UK resident within a set period after purchase, so keep the records.
Is it better to rent for a year before buying?
For most relocators, yes. London is a city of very local micro-markets, and a year of living in it is the cheapest education you will get. Buying immediately makes sense only when the location is already fixed by a school or an office and the horizon is long.