Executive summary: Non-resident Stamp Duty Land Tax research
Published 24 April 2025
© Crown copyright 2025
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1. Introduction
Research that gathered views and experiences from people who had purchased UK property while a non-UK resident, to understand their situation and motivations when purchasing property.
In 2020, HMRC commissioned IFF Research to conduct quantitative research into non-UK residents who had purchased property in the UK.
The objectives of the research, set by HMRC, were:
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to explore the impact that a new Stamp Duty Land Tax (SDLT) surcharge would have on non-UK residents
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to identify the types and values of the properties that non-UK residents purchase
A total of 289 interviews with non-UK resident purchasers were conducted between October 2020 and January 2021. As such, the fieldwork was carried out before the SDLT surcharge came into force, so no participants had paid the surcharge at the time of the survey.
2. Summary of findings
2.1 Reasons for purchasing most recent property
Most non-UK resident purchasers planned to rent out their most recently purchased property to others, followed by using the property as a place of residence for themselves and as a place of residence for family members or friends. 78% of non-UK residents planned to own their property for more than five years.
2.2 Future purchases and factors affecting purchasing behaviour
The research found that 63% said they were aware of the SDLT surcharge. This was lower than the levels of awareness of other taxes (SDLT, Capital Gains Tax, Inheritance Tax). Awareness of the surcharge was related to a lower likelihood to purchase property in the future. Other factors that had an impact on stated likelihood to buy were EU exit and Covid-19. Predominantly these factors were reported to make people less likely to buy in the UK in the future.
2.3 Reasons to purchase in the UK
The research found that the UK was seen as a safe investment, particularly amongst those buying high value properties. Over the following 10 years, 74% expected to see the value of their property increase in value. The top three underlying reasons for buying property in the UK were family or personal connections (57%), personal knowledge of the UK (45%) or as a safe investment (42%).
2.4 Profile of residential properties purchased
Looking at the profile of residential properties purchased, the research shows that most respondents owned one property in England and Northern Ireland and that London was the most popular location. Most recent purchases were more likely to be flats or apartments rather than houses, with the mean price of their most recent purchase £442,000. Nearly one in ten (9%) of properties purchased by the non-UK resident buyers cost in excess of £1 million and a quarter (25%) cost more than £500,000.