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The UK remains a top destination for UAE investors seeking strong returns in real estate. While London has traditionally been the focus, a new trend is emerging—investors are turning to Northern England to capitalise on high rental yields, lower property prices, and strong tenant demand.According to new data from buy-to-let mortgage lender Fleet Mortgages, 25% of all landlord mortgage applications in the North East came from first-time landlords in Q4 2024. This is significantly higher than the South West, where first-time landlord applications accounted for just 4%. This shift is being driven by several key factors, including more affordable purchase prices, lower financing requirements, and greater rental income potential. The numbers speak for themselves. The North East currently delivers an average rental yield of 9.3%, making it one of the most profitable buy-to-let markets in the UK. Yorkshire & Humberside follows closely with 8.6%, while the North West offers 8.3%. In contrast, Southern regions, including Greater London, offer much lower yields—just 5.8% on average.
Investment opportunities
Why UAE Investors Should Consider Northern UK
For investors based in the UAE, the lower entry costs and higher returns in Northern England make it an excellent alternative to London. With property prices significantly lower than those in the South, landlords in the North are borrowing the lowest loan amounts, averaging £77,000 per mortgage—a major advantage for those looking to maximise their capital efficiency.
Another major trend is the rise of limited company ownership for UK landlords, a strategy that UAE investors should consider when structuring their investments. In Yorkshire & Humberside, 91% of mortgage applications were from limited company landlords, compared to just 60% in the South West. This approach can provide significant tax advantages for foreign investors.
Despite concerns about rising costs, tenant demand remains extremely strong across the UK. With rental stock still limited and prices continuing to rise, buy-to-let landlords are well-positioned to generate consistent rental income. Fleet Mortgages reports that in some regions—such as the North East, East Anglia, and Greater London—buy-to-let purchases are almost on par with remortgages, showing that investor confidence remains high.
UK Real Estate: A Smart Move for UAE Investors
The latest data challenges the narrative that UK real estate investment is slowing down. Instead, investors are adapting—shifting their focus to high-yield markets where opportunities are strongest. With Northern England offering affordable entry points, strong rental returns, and rising property values, UAE-based investors have a unique opportunity to build a profitable UK property portfolio.
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Want to explore high-yield UK investment opportunities? Contact us today to get expert guidance on securing your next buy-to-let property.
