Property Due Diligence Checklist for UK Investors

Location and demand

• Evidence of achieved rents for comparable properties (not just asking rents)
• Who the likely tenants are, and whether the property suits them
• Transport, employment, schools and amenities
• Local licensing schemes and any Article 4 directions

Legal and title

• Freehold or leasehold; remaining lease length, ground rent and service charge history
• Restrictions in the lease or title on letting, alterations or use
• Rights of way, boundaries and any disputes
• Searches: local authority, drainage, environmental and any location-specific searches

Building condition

Commission a survey appropriate to the building's age and construction. Look for structural movement, damp, roof condition, the age of electrics and heating, and any non-standard construction that may affect mortgageability or insurance.

Planning and building control history

• Have past extensions or conversions got planning permission or lawful development status where needed?
• Is there building regulations completion evidence for structural, electrical or layout changes?
• Is the property listed or in a conservation area?

Compliance and lettability

• Current EPC rating and the cost of any improvements needed
• Gas and electrical safety, smoke and carbon monoxide alarms
• Fire safety, especially in flats and shared houses
• Whether a licence is required, and whether the layout meets standards

Finance

Confirm the lender will accept the property type and your intended use, check the rental stress test, and model the deal with a higher interest rate. See our guides to buy-to-let costs and yield versus ROI.