How buying a London home supports your child’s degree

For many Indian families, the decision to send their child to London is already carefully planned. The university is finalised and the costs are clearly understood.

Housing is often treated as a running cost and this is where the decision can be improved.

Instead of paying rent for three to five years, many Indian families are now increasingly opting to buy property in London for international students. This decision allows families to support their child while building a long-term asset that can appreciate in value over time and diversify their investments globally.

London student accommodation vs buying: A clear comparison

Let us keep this comparison simple.

If you choose to rent London student accommodation:

Monthly rent for 3–4 years.

No ownership at the end.

Rent increments annually.

Monthly outflows go towards building your own property asset.

A long-term investment that can appreciate in value over time.

Diversification of investments globally.

Stable and secure living for your child.

The current market figures further support this shift:

The average rental for UK properties (March 2026) is £1,319/month and the supply of homes available to rent in London remains 23% below pre-pandemic levels.

These figures indicate continued pressure on rents through 2026, making ownership a more stable and controlled option for families.

Why Indian parents are buying apartments in London

There is a clear increase in the number of Indian parents buying apartments in London, especially near top universities such as UCL, LSE and King’s College London along with Imperial College London, Queen Mary University of London, City University of London and University of the Arts London.

The reasons for this shift are very practical.

When buying a property, your child benefits from stability and does not need to relocate yearly. It also means you can choose a well-connected location, depending on your budget, that is either walking distance or a comfortable 20–30 minute commute to university.

As parents, you can choose the best living environment for your child. This includes the building, furnishing, quality of the surroundings, in-house amenities - features that directly support your child’s daily routine and focus.

While renting serves a short-term need, buying a property in London as an Indian gives you a real asset in a global market.

ROI on London property

From an investment perspective, ROI (return on investment) on London property works in two ways:

Capital appreciation: London continues to see long-term value growth due to limited supply, global demand and strong location fundamentals.

Rental yield: Strong tenant demand, particularly in well-connected locations.

Currency advantage: Potential appreciation against INR, offering a natural hedge for Indian investors.

You can review expected returns using our ROI calculator.

LRS limit for UK property 2026: How Indian buyers can fund the purchase

Under current RBI guidelines, the LRS limit for UK property 2026 is $250,000 per person per year. This limit becomes more effective through family pooling of LRS for real estate.

For instance, two members can pool up to $500,000, while a family of three can remit up to $750,000.

For a detailed breakdown, you can refer to our LRS guide

UK mortgage for Indian property investors in London

Indian residents typically fund overseas property purchases through LRS remittances and available personal funds, as overseas mortgages are not generally accessible to resident Indian buyers.

Stamp Duty Land Tax for overseas buyers

When you buy a property in London, as a resident or overseas buyer, you are required to pay Stamp Duty Land Tax (SDLT). This is a one-time cost at the time of purchase.

As an overseas buyer, you pay the standard SDLT rates, which are based on the price of the property.

The tax is calculated in slabs:

• 0% on the first £125,000
• 2% on the portion up to £250,000
• 5% up to £925,000
• 10% up to £1.5 million
• 12% above that

As a non-UK resident, you are also required to pay an additional 2% surcharge on top of these rates.

If this is an additional purchase, there is an additional 5% surcharge.

You can easily get a clear breakdown through our SDLT calculator.

UK Graduate Visa Housing: continued use after degree

With the UK Graduate visa, your child can stay back in the UK after completing their studies.

The purchased property continues to serve as ready accommodation.

No need to re-enter the rental market.

Your child benefits from stability during early career years.

This pathway works for every type of buyer:

The edu-investor parent: You reduce rental outflow and create ownership at the same time.

The dual-purpose buyer: You benefit from asset appreciation, a currency hedge against INR and practical use of the property during academic years.

The legacy builder: As a buyer, you establish a long-term UK asset with consistent rental income potential and secure a base for future family needs.

How Benham and Reeves India can help Indian parents

We work closely with Indian families making this exact decision: balancing their child’s education with a long-term, overseas property investment.

Our offices in Mumbai and Delhi support property shortlisting near top universities such as UCL, LSE and King’s College London, along with negotiation, LRS guidance, furnishing and handover.

Benham and Reeves India has been working with Indian buyers since 2011, helping them invest in London in a clear and structured way.

Let us connect today for a no-obligation consultation.