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If it is a new site, how long has it been in the 'web' results on google.co.uk - if it hasn't been in long it is probable that the results on UK results haven't yet been updated. (As an aside recently I've been seeing significantly more lag before results get to the UK only results than has been the case previously - anyone else witnessed this phenomena?)
If neither of the above have you checked the IP address against the RIPE database to see what location it is showing. Some supposedly UK hosts actally have server IPs registered to Germany or the Netherlands.
I had thought that it had been hosted in the UK for the last 2 years, but it needs checking.
Depending on the answers I get, I may come back and ask for your advice again
We have purchased the .co.uk domain in order to address this.
However I am concerned about a mirror site and duplicate content. I have read conflicting advice that I should
1. do a 301 permenant redirect - but will this not mean that the site is merely still seen as a .com site? and
2. do a 302 temproray redirect - not sure why.
Can anyone help out with some advice here?
On the other hand if they insist on remaining hosted in Mexico - then your strategy needs to be a little different. You will need to look at making the site UK specific to avoid duplicate content penalties.
Also... don't ASSUME the hosting company in the UK actually hosts in the UK. One of the largest UK ISPs actually hosts in Germany. Not that their help desk people would know that!