Buying a house after Brexit – what is worth knowing?

For some, buying a house is a dream come true and one of the most important moments in life; for others, it is an investment. Whatever drives you to buy a property, it is worth starting the whole process by familiarising yourself with the applicable rules and the general market situation. Here it is impossible to skip the questions about Brexit and its impact both on prices and on the options available to Poles wanting to buy their own home in the UK.

Can Poles buy property in the United Kingdom after Brexit?

Brexit has not introduced any restrictions in this area. Property in the UK can therefore be bought by British citizens and foreigners alike. Nor is residency required - this means that people who are only planning to move to the United Kingdom, or who live in Poland but want to invest in a property in the UK, can also do so.

Importantly, however, although residency status does not affect the ability to buy itself, it does matter for tax purposes. A great example here is Stamp Duty Land Tax, the tax on property purchases in England and Northern Ireland - for non-residents, the applicable rates are 2 percentage points higher.

It is also worth stressing here that buying a house in the UK is not the same as gaining the right to live permanently in the country. Everyone from outside the United Kingdom must meet the requirements for obtaining a visa (if one is required in their case) or the right to reside, regardless of whether they own property there.

How has Brexit affected property prices in the UK?

Before Brexit, there were opinions that leaving the European Union would push property prices down. Reality verified these predictions, however, and prices have risen noticeably. Of course, Brexit is not the only factor that contributed to this situation, and similar market trends can be seen in other countries, including Poland. That does not change the fact that if we compare prices from before the United Kingdom left the EU with where they are now, we will notice significant differences.

• Average house price in December 2019: £252,000 in England, £166,000 in Wales, £152,000 in Scotland, £140,000 in Northern Ireland.

• Average house price in January 2021: £267,000 in England, £179,000 in Wales, £164,000 in Scotland, £148,000 in Northern Ireland.

• Average house price in August 2023: £310,000 in England, £217,000 in Wales, £194,000 in Scotland, £174,000 in Northern Ireland.

What does buying property in the UK look like after Brexit?

The property purchase process itself has not changed. The time needed to buy a house is hard to pin down, because it depends on many factors, e.g. whether we want to negotiate the price, commission a building survey, or use government support schemes. The whole thing can, however, be described in a few simple steps:

• Assessing your budget: At the very start, it is worth realistically assessing your savings and borrowing capacity to set a price range for the properties you look at. You also need to remember that when buying a house, you must allow for other expenses and include them in your budget - these include mortgage fees, Stamp Duty, and the costs of a solicitor and surveyor.

• Making an offer: Once we find a house that meets our requirements and is at the right price, it is time to make an offer. At this stage it is also worth finding a solicitor who will take care of all the formalities connected with the purchase, and a building surveyor who will check the condition of the building.

• Completing the purchase: If, after checking the condition of the building, we are still set on buying, all that remains is to finalise the mortgage formalities with the bank and sign the contract with the seller - a lawyer’s help is useful here too, to make sure the document has been drawn up correctly.

Mortgages in the UK

Both before Brexit and after, few people can buy a house in the UK with cash. In most cases, a mortgage is taken out for this purpose. Getting a mortgage can be quite a time-consuming process. It requires, among other things, providing the lender with documents confirming your earnings, the size of your other financial commitments and your outgoings.

Your credit score also has a big influence on the lending decision. It is worth checking it before you apply, to verify the data held about you and, if necessary, take steps to improve your creditworthiness, which will increase the chance of a positive mortgage decision. You also cannot forget the deposit - its size can vary from bank to bank, but it is most often a minimum of 5% of the house price.