Best Types of Investment Properties for British Expats

Expat Property Investments Ltd
Mar 26
2 min read

For British expats and non-UK nationals looking to invest in UK property, choosing the right type of investment is crucial. The two main options, apartments and houses, each have their own pros and cons.

This may split opinion, but we prefer houses as they often provide better long-term value and fewer financial risks, making them a smarter choice for expat property investors.

Brick houses under a blue sky, featuring white windows and red doors. Neat front yard with green grass and a paved driveway. Peaceful setting.

Apartments: The Pros and Cons

Apartments can be an attractive option for expats investing in city centres, where demand for rental properties is high. However, they come with potential drawbacks, including:

Ground rent and service charges: These ongoing fees can eat into rental profits.
Leasehold restrictions: Many apartments are leasehold, meaning you don’t fully own the land and may face limitations on letting or renovations.
Limited value-add potential: Unlike houses, apartments offer fewer opportunities to increase value through renovations or extensions.

Why Houses Are a Better Investment for Expats

Houses, particularly freehold properties, tend to offer more security and flexibility for British expats and non-UK residents. Key benefits include:

No hidden costs: Freehold houses have no ground rent or service charges.
More control: You own the property outright, avoiding leasehold restrictions.
Greater potential for adding value: Renovations, extensions, and refurbishments can significantly increase a house’s worth.