UK Experiences a Rise in the Number of British Expats in the UAE Investing in Property

By HopwoodHouse, 03 April, 2018

It has been revealed that a large number of British expats now living in the UAE are looking towards UK property, and making investments whilst the pound is currently at its weakest level. With low property prices outside of London, combined with the weak pound, British expats living in the UAE, as well as UAE nationals are looking to capitalise and invest in UK property cheaper than they could ever have done before.

Investing in the UK

New figures suggest that there has been an increase of 20% each year to the number of expats and UAE nationals making UK property investments. It is also known that two thirds of these expats bought property within Manchester, whilst a quarter chose Birmingham for their property investments. It is no surprise to see cities outside of London benefiting from investments, with London witnessing a 60% drop in comparison, as large regeneration projects and strong rental yields make cities outside of London very attractive investment hotspots.

There is a big difference between the north and south of the UK where property investment is concerned, with London experiencing a 70% rise to house prices over the last decade, whilst the North has seen a decrease of more than 40%. This presents an issue to London, with high property prices and low rental yields encouraging investors to invest in more northern UK cities, where they are able to benefit from low property prices and higher rental yields.

A Increase in Investors from the UAE

The UK now offers a wider range of mortgage opportunities for expats and foreign nationals, meaning that it is now a lot easier for them to obtain mortgages at better rates than before.  As well as this, the mortgage process is simpler in the UK and the rates that they are able to get within the UK are lower than those in the UAE, which means that UK property investment is often a much better proposition for them.

In previous years, only those with strong finances were able to invest in London property by obtaining an expensive mortgage, whilst many UAE nationals could not afford it, and could not afford to work with brokers in their own country. Mortgage providers now offer expats and UAE nationals much better opportunities, and as such, investments have increased.

Many of these new investors are beginning to invest in property outside of London, with a big focus on cities within the Northern Powerhouse Initiative including investments in buy-to-let in Manchester and Liverpool, with greater prospects for growth and profit. Not only are these cities being transformed, but they also already offer strong returns, of which are only likely to improve. The UK remains as one of the best places to invest across the globe and with the weakening of the British Pound following the results of Brexit, many expats are turning their attention back home to secure property while the prices are at the lowest they have ever been.