India-UK Free Trade Agreement: What It Means for Real Estate Investment

The India–UK Free Trade Agreement (FTA), which concluded in May 2025, was a landmark deal aimed at boosting bilateral trade by £25.5 billion annually. It was described by the Prime Minister, Sir Kier Starmer, as an agreement that would “deliver for the British People”.

The FTA is expected to have notable ripple effects within the UK property market, including residential, mixed-use and commercial property. With Indian capital being a mainstay of the UK property market for a number of years, this trend is likely to accelerate, especially with stronger bilateral ties between the two governments and a significant reduction in historic trade barriers.

Indian businesses, high-net-worth individuals, students and career professionals may all be leading the surge in this space.

The FTA includes favourable labour mobility provisions for Indian nationals working in the UK. The Double Contributions Convention allows some Indian nationals, living and working in the United Kingdom, to avoid National Insurance contributions for up to three years – this could influence a company’s decision to recruit Indian employees.

Labour mobility and housing demand

An increase in the number of Indian workers in the United Kingdom could lead to new opportunities for residential landlords and developers of residential and mixed-use development schemes. This could boost demand for short- and medium-term rentals as well as the purchase of freehold residential property.

With the Labour Government announcing in 2024 its plan to deliver 1.5 million new homes during this parliament, and with housebuilding already underway, developers are likely to remain busy.

Commercial property

A boost to regulatory certainty has been a key theme in the FTA, focusing on areas such as anti-corruption, customs and trade facilitation/cooperation, and increased participation by SME enterprises.

Greater certainty in these areas could encourage UK companies to do more business with India – and Indian companies to set up or expand operations in the UK. In both scenarios, demand for commercial real estate is expected to grow.

Conclusion

If you’re an Indian company looking to enter the UK real estate market, there are likely to be key tax considerations to address.

Our team of experts can support and guide you across all aspects of your real estate and wider business transactions, including key tax implementations.