introduction
The UK real estate market has kicked off 2025 on a strong note, with Halifax reporting a +0.7% increase in average property prices in January, following a slight decline in December. The new record-high average price of £299,138 signals a continued upward trend. While annual growth has eased slightly to +3.0%, the market remains stable, offering excellent opportunities for UAE investors looking to diversify into UK real estate.
Investment opportunities
Regional Insights: Where Should UAE Investors Focus?
The UK market presents diverse opportunities across its regions, with some areas experiencing stronger price growth than others:
- Northern Ireland: Leading the UK with +5.9% annual growth. Average property price: £205,473.
- Wales: Strong performance with a +3.6% increase, pushing the average price to £227,397.
- Scotland: Modest growth of +2.4%, with properties now averaging £210,690.
- North East England: Now the fastest-growing region in England at +5.2% annually, with an average price of £178,696.
- London: The UK’s most premium market, with prices averaging £548,288, up +2.8% from last year.
For UAE investors, London remains a prime choice for long-term appreciation, while emerging regional hotspots offer high rental yields and lower entry costs.
Mortgage Rates & Affordability: What UAE Investors Need to Know
With the Bank of England implementing its first base rate cut of the year, mortgage rates are expected to stabilise between 4% and 5% throughout 2025. This shift presents a valuable window for UAE investors to secure financing at competitive rates. Additionally, inflation is easing, and household earnings in the UK are rising, further supporting the market's resilience.
Why UAE Investors Should Consider UK Real Estate in 2025
The UK property market continues to attract international investors due to its strong legal framework, high rental demand, and consistent capital appreciation. Whether investing in prime London real estate or high-yield regional markets, UAE investors can benefit from:
✔ Stable property market growth
✔ Attractive rental yields
✔ Strong demand for quality housing
✔ Favourable currency exchange rates
conclusion
With UK house prices reaching record highs and mortgage rates stabilising, now is the perfect time for UAE investors to capitalise on the UK market. Henley Capital specialises in guiding UAE-based investors through the UK real estate landscape, ensuring secure and profitable investments. Contact us today to explore tailored investment opportunities. Visit www.henley-capital.com to learn more.
