Podcast: Purchasing property in Scotland as an overseas buyer

In this episode of the ESPC Property Show podcast, Paul & Megan are joined by solicitor Jill Andrews from Connell & Connell to discuss the challenges and trends for foreign nationals looking to buy property in Scotland in 2025. In this insightful and interesting instalment of season 5, the panel chat about where overseas buyers are coming from, what is attracting them to Scotland, whether they are buying or renting first, and what kind of properties overseas buyers are looking for.

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Key Insights

Top countries of origin for foreign buyers

Recent data from Registers of Scotland showed buyers came from 66 different countries, with the USA (13%), Hong Kong (8.5%), and Australia (7%) leading the way. A strong US dollar and a relatively weaker pound have made Scottish property more appealing, especially for Americans. Buyers from Hong Kong are often UK expats returning for family or educational reasons, while Australians are influenced by their own housing market pressures.

Trends in property type and location

Foreign buyers are increasingly focusing on urban areas, particularly cities like Edinburgh and Glasgow, rather than the remote, romanticised "Cairngorm cottage" image. 80% of purchases by overseas buyers are now in cities, and they are usually larger family homes or second residences, not small flats. Buyers see Scottish cities as offering good value and lifestyle compared to their home markets.

Cash buyers vs. mortgages

A significant portion of foreign purchases are cash transactions, particularly from individuals who have sold property abroad and are relocating permanently. Cash buyers have a major advantage in Scotland's competitive market. Mortgages for overseas buyers are possible but more complex, with stricter lending criteria. Some Hong Kong buyers do successfully obtain mortgages through international banks like HSBC.

The property buying process in Scotland

The process for buying property in Scotland is consistent for both residents and non-residents. There are no restrictions on foreign ownership, and buyers do not need a UK bank account. However, solicitors must carry out thorough ID verification and anti-money laundering checks, regardless of where the buyer is based. It's important for buyers to demonstrate the legal source of funds, whether those funds come from Texas or Tokyo.

Legal and financial preparation

International buyers must prepare well in advance by appointing a solicitor who understands Scottish conveyancing. It’s emphasised that legal, tax, and immigration advice is essential, especially for buyers relocating permanently. Buyers must also be aware of taxes like the Additional Dwelling Supplement (ADS), which applies if they still own property abroad unless they’re genuinely replacing their main residence.

Cultural and practical considerations

Many foreign buyers underestimate the practical challenges of relocating, such as weather, infrastructure, and lifestyle differences. Potential buyers are urged to visit different areas of Scotland, understand local transport, services, and housing stock, and even rent before buying to avoid culture shock.

Challenges with timing and currency

International bank transfers can take several days, especially from places like Hong Kong, and are subject to currency conversion risks and bank delays. Buyers must plan to ensure funds arrive well before settlement day, as delays could breach the contract. Currency fluctuations also add uncertainty - professional advice on this is highly recommended.

Avoiding common mistakes

A frequent mistake is buying a property based solely on online viewings or emotional attachment (e.g., fond memories of university in Scotland). Living and working in Scotland is different from visiting or studying there. Prospective home buyers should spend time on the ground, explore neighbourhoods in person, and avoid overly idealistic expectations. Scotland offers a great quality of life, but it’s important to match lifestyle needs with reality.