The differences between the US and UK property market

We spent a week in New York as part of co-hosting an event for American families considering UK education for their children. One topic that came up repeatedly is the striking differences between the US and British property markets.

In the US, buyers and sellers each appoint an agent who acts on their behalf and has access to a centralised multi listing service (MLS) that provides transparency, visibility of all available properties, and widespread collaboration. Fee-sharing is common, and only a small proportion of transactions happen truly off-market.

London is very different. There is a distinct separation between buying and selling agents, and those who attempt to operate on both sides often encounter limited collaboration, as other agents view it as ‘stepping on the other side’s turf’. Buyers must navigate multiple online portals, an average of 30 selling agents per neighbourhood - many of them independent with limited visible presence - and personally contact each one to enquire about listings. Even then, nearly half of properties sell off-market and may never appear online.

One American couple illustrated this perfectly. Before arriving in London, they had contacted a single selling agent, Jeremy, expecting him to show the best options for their brief. They soon realised that to truly see the top properties, they would need to either appoint a buying agent, or reach out to 30 different ‘Jeremys’ per neighbourhood – and even then, some off-market opportunities would remain unseen. The revelation left them equal parts amused and bemused at London’s fragmented system.

The transaction process is also different. In the US, a financial deposit secures a purchase while due diligence is conducted. In England, by contrast, nothing is legally binding until exchange of contracts, which can be many weeks later. Until that point, either party can walk away for any reason, or the seller can accept a higher offer from a late bidder. Buyers are left exposed, having incurred costs on surveys, legal fees and other due diligence with no guarantee of completing the purchase.

For Americans accustomed to the efficiency of the US system, it was a fascinating and eye-opening week for them, comparing notes on navigating London’s unique property system.