The Rise of Americans Moving & Renting in the UK: What UK landlords Must Check

Here's what actually matters for landlords: a tenant's nationality doesn't change your tax position. What it does change is the checks you need to run before the tenancy starts, and if you're an overseas landlord, whether the Non-Resident Landlord Scheme applies to you.

This guide covers the demand behind the numbers, the checks you actually need, the tax rules that bite, and a worked SDLT example for overseas investors.

US citizenship applications to the Home Office rose 26% in 2024 compared with 2023, driven by a 40% jump in the final quarter, the highest figure since records began roughly two decades ago. On the rental side, Goodlord recorded a 32% rise in Americans signing UK tenancy agreements between January 2025 and June 2026. 

One caveat worth keeping in mind: these are percentage increases with no published base figures. A 60% rise in a small regional cohort is still a small absolute number. Americans also need immigration permission to live and work here, and the salary and sponsorship requirements are a real filter. Treat this as a directional trend, not a flood. 

Three reasons come through the reporting. Politics is the first: immigration law firms recorded a spike in American applicants after the 2024 US election. Cost is the second. Median Manhattan rent hit $5,000 a month, about £3,766, while Americans renting in Scotland pay an average of £1,711. Goodlord made the point that lower UK salaries come as a shock, but cheaper rents soften it. 

The third is lifestyle: healthcare costs, and lower rates of gun violence. At the top of the market the pattern shifts. US nationals accounted for nearly 12% of homes bought by overseas buyers in Prime Central London in the final quarter of 2024, and they're the largest overseas tenant group in those postcodes.

For UK property investors, stronger overseas demand may open up opportunities, but non-residents also face real cost penalties on both the buying and selling side. 

Overseas rental demand is spreading beyond London

Non-resident investors face higher SDLT 

Worked Example: £450,000 Manchester Buy-to-Let 

A UK-resident buyer purchasing the same property as their only home would pay £12,500, a £31,500 difference. 

These figures are illustrative. The correct SDLT calculation depends on your specific circumstances. 

Capital Gains Tax can also affect the exit 

Non-residents can be liable to UK Capital Gains Tax when disposing of UK property or land. For 2026/27, CGT rates are generally 18% or 24%, depending on taxable income and gains, with a £3,000 Annual Exempt Amount for individuals. 

Letting to an American tenant doesn't change your UK property tax treatment. But you still need to run the usual legal checks before the tenancy begins. 

Pre-Tenancy Checklist 

• Check Right to Rent in England - Check every adult occupier using the appropriate Home Office online, digital, or document-based process. Follow-up checks are required where the tenant has time-limited permission to stay. 
• Check the Energy Performance Certificate (EPC) - Most covered rental properties in England and Wales must have an EPC rating of E or above, unless a valid exemption applies. 
• Protect the Tenancy Deposit - Where the deposit protection rules apply, place the deposit in a government-approved scheme within 30 days and give the tenant the required information. 
• Confirm Council Tax Liability - The occupier normally pays Council Tax, though landlords can be liable in certain cases, including some HMOs. 
• Check your Making Tax Digital Position - MTD for Income Tax runs on your gross property and self-employment income before expenses, not your tenant's nationality. 

For landlords with qualifying income above £50,000 in 2024/25, MTD for Income Tax has applied since 6 April 2026. The threshold falls to £30,000 from April 2027, and to £20,000 from April 2028.

If your usual place of abode is outside the UK, the Non-Resident Landlord (NRL) Scheme may apply. This is a different test from UK tax residence, and the two get confused often. 

Normally, your letting agent must deduct 20% basic rate tax from your rental income after certain allowable expenses, then pay it to HMRC. If there's no letting agent, a tenant paying you more than £100 a week on average may have to operate the scheme instead. 

You can apply to HMRC for approval to receive your UK rental income without tax deducted at source. That doesn't make the income tax-free. You still have to report it and pay whatever UK tax is due. 

So, if an American tenant pays rent directly to you while you're living overseas, make sure they understand whether the NRL Scheme applies to them, or use a letting agent to handle the withholding for you. 

The term "2% rule" can mean two very different things, and it trips up American tenants and property investors entering the UK market more often than you'd expect. 

In US property investing, the 2% rule is just a rule of thumb. It suggests monthly rent should equal at least 2% of the property's purchase price. It's not a UK tax rule, has no status in UK law, and isn't recognised by HMRC. 

In the UK, the 2% figure that matters is a Stamp Duty Land Tax (SDLT) surcharge. Non-UK residents buying residential property in England or Northern Ireland can face a 2-percentage point SDLT surcharge on top of the normal residential rates. If the higher rates for additional properties also apply, the 2% surcharge stacks on top of those too. 

So, if a US buyer mentions the "2% rule," find out first whether they mean the American rental yield rule or the UK non-resident SDLT surcharge. They're completely different and mixing them up is an easy way to misprice a deal.