introduction
The UK government recently increased the stamp duty surcharge for second homes from 3% to 5%, aiming to slow buy-to-let purchases and favour first-time buyers. However, new data reveals that the market remains resilient, with investors continuing to secure lucrative opportunities in UK real estate.
Investment opportunities
Why UAE Investors Are Still Buying UK Real Estate
LCF Law’s property conveyancing division, LCF Residential, found that despite the stamp duty rise, all investor transactions continued as planned. This suggests that seasoned investors, including those from the UAE, see UK property as a long-term, high-value asset that remains attractive despite additional costs.
Julie Davis, head of LCF Residential, stated:
“The 2% increase has had no real impact. Investors are accustomed to stamp duty charges and still view UK property as a strong investment.”
What This Means for UAE-Based Investors
The UK remains a top destination for real estate investment, particularly for international buyers looking for strong rental yields and capital appreciation. With the next stamp duty changes set for April 2025, UAE investors should consider entering the market before thresholds are lowered:
- The £250,000 exemption for homebuyers will decrease to £125,000.
- The first-time buyer exemption will drop from £425,000 to £300,000.
conclusion
Despite policy changes, the UK real estate market remains a stable and profitable investment choice for UAE buyers. With a high demand for rental properties, buy-to-let investments continue to generate strong returns.Looking to invest in UK real estate from the UAE? Henley Capital can help you find high-yield opportunities. Visit Henley Capital to start your investment journey.
