Why US buyers are active in prime London property: the dollar, flat prices since 2014, legal certainty, and what Americans should know before they buy.
By Aldo Attanasio d’Aponte – 17 September 2026
Why American buyers keep choosing London property
American buyers have become one of the most consistent sources of demand in prime central London, and the reasons are not sentimental. Sterling has been weak against the dollar for the better part of a decade, prime London prices have gone broadly sideways since 2014, and the legal system is one an American understands without translation. Add the schools, the time zone and a two-hour flight to the rest of Europe, and London starts to look like value rather than indulgence.
Why is London cheap for a dollar buyer?
Two things have happened at once. The first is currency. In the mid-2000s a pound bought close to two dollars; since 2016 it has spent most of its time between $1.20 and $1.35. A £5m house that would once have cost a New Yorker nearly $10m now costs a little over $6.5m.
The second is price. Prime central London peaked in 2014, when stamp duty was restructured at the top end, and in real terms has not recovered. The best addresses in Mayfair, Belgravia and Knightsbridge are trading at or below their 2014 sterling values, while Manhattan, Miami and the Bay Area have all moved sharply higher. For an American who owns property at home, London looks like the one global city that has been on sale for ten years.
I would add a caution from experience. A currency discount is a reason to buy now rather than later; it is not a reason to overpay for the wrong property. The discount applies to everything in the market, good and bad alike.
What does an American get in London that they cannot get at home?
Certainty, mostly. English property law is the parent of American property law and a US buyer will recognise the concepts, the contracts and the role of the courts. Title is registered, the state guarantees it, and there are no restrictions on foreign ownership. A buyer from Texas can own a freehold house in Chelsea on exactly the same terms as a buyer from Surrey.
Then there is the practical case. London’s private and international schools are a serious draw for families, and the universities take American students in large numbers. Healthcare is accessible. The city is walkable and safe by the standards of large American cities, whatever social media may suggest. And the geography is hard to argue with: Paris, Milan, Geneva and Rome are all closer to a house in Kensington than Chicago is to New York.
Many of our American clients describe the purchase as a “plan B” or a base for Europe rather than a full relocation, and that shapes what they buy: a lateral flat with a porter in a well-run building, not a five-storey house that needs a housekeeper.
Where do American buyers tend to buy?
Mayfair, Belgravia, Knightsbridge and Chelsea take the largest share, followed by Kensington, Notting Hill and St John’s Wood, the last two partly because of the American School in London and the international schools nearby. Marylebone and Fitzrovia have grown in popularity with younger buyers who want to walk to the office. Buyers at the very top of the market look at the small number of turnkey developments with hotel-style services, which feel familiar to anyone used to a Manhattan condominium.
What surprises Americans about buying in London?
Almost everything about the process. There is no multiple listing service. A buyer without representation has to register with dozens of agencies, each holding a slice of the market, and still will not see the properties that change hands privately. In our own acquisitions, 78% have been secured off-market. An American used to a single, transparent listing system finds this baffling, and it is one of the principal reasons US buyers use a buying agent here when they would not at home.
The second surprise is that nobody is acting for them. The estate agent works for the seller and is paid by the seller. In the UK anyone can call themselves an estate agent; there is no licensing. Buyer representation is not the default, as it is in most of the United States, and a buyer who assumes the friendly agent is “their” agent will pay for that assumption.
The third is time. An American closing takes four to six weeks. A London purchase from accepted offer to completion typically takes three to four months, and until contracts are exchanged either side can walk away without penalty. Gazumping, where a seller accepts a higher offer after agreeing yours, is legal and not unknown.
Then there are the smaller shocks. Most flats are leasehold, a form of long tenancy that Americans have usually never encountered. Period houses have single-glazed sash windows, no air conditioning and fewer bathrooms than bedrooms. Square footage is smaller, closets are rarer and the kitchen may be in the basement. None of this is a reason not to buy; all of it should be priced into the offer.
What does an American buyer pay in tax?
Stamp duty land tax is the entry cost. A non-UK resident pays a 2% surcharge on top of the standard bands, and a buyer who already owns a home anywhere in the world pays a further 5% surcharge on an additional property. On a £5m flat that combination adds several hundred thousand pounds to the standard bill, and it is payable within 14 days of completion.
Holding a UK residential property in a company brings the annual tax on enveloped dwellings, so most private buyers own personally. Selling triggers UK capital gains tax at 18% or 24% on residential gains, and US citizens will also be reporting to the IRS, with the tax treaty deciding who takes the first bite. Inheritance tax at 40% applies to UK property regardless of where the owner lives, above the nil-rate band. All of this is manageable with advice taken before exchange; it is expensive to fix afterwards.
Rates and figures correct at the time of writing; confirm the current position before relying on them.
How Arbitrage can help
We act only for buyers and have done so since 2006, and a large part of our work is for clients who live abroad and cannot view every flat that comes to market. We search the whole market, including the properties that are never advertised, negotiate the price (our average is 12% below asking) and coordinate with your US and UK advisers so that the purchase fits the rest of your affairs. If you are considering London from the United States, we can tell you in one conversation what your budget buys and where.
Frequently asked questions
Can an American citizen buy property in London?
Yes, without restriction. There is no residency requirement and no approval process. You will need to satisfy anti-money-laundering checks on identity and source of funds, which every buyer undergoes.
Do I need a visa to own a home in the UK?
No. Ownership and immigration are separate. You can own a London property and visit as a tourist; living in it for more than six months a year raises residence and tax questions that need advice.
Can an American get a UK mortgage?
Yes, though the high-street banks are cautious with non-residents. Private banks and specialist lenders will lend to US buyers with good income and assets, usually at lower loan-to-value than a domestic borrower, and your existing bank may have a London arm.
Is the currency discount still there in 2026?
The pound remains well below its long-run average against the dollar and prime London prices remain below their 2014 peak. Currency moves daily, so agree with your bank how and when to convert before you commit.
How long does it take to buy?
Allow three to four months from accepted offer to completion for a straightforward purchase, longer if the lease or the building raises questions. A well-prepared cash buyer with representation can move faster.
Aldo Attanasio d’Aponte is the founder of Arbitrage Group, a buyer-side property adviser in prime central London since 2006. About Aldo · Case studies