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Rents across the UK are forecasted to rise by 17.6% over the next five years, as reported by leading real estate firm Savills. This growth is driven by a severe supply-demand imbalance. While tenant demand has slightly cooled from its peak in 2021 and 2022, rental property availability remains critically low—down 16% compared to pre-pandemic levels. Competition among renters is fierce, with listings being snapped up 20% faster than before.
Investment opportunities
Challenges for UK Landlords: An Opportunity for UAE Investors
UK landlords are leaving the market in record numbers due to rising mortgage costs and stricter regulations, including the second home stamp duty surcharge introduced by the Chancellor. Upcoming energy efficiency upgrades required by 2030 are another deterrent. These challenges are creating opportunities for international investors, especially those from the UAE, to step into a high-demand market as local landlords scale back.
London’s Real Estate Market: Slower, Sustainable Growth
While UK rents are expected to grow significantly, London’s market shows a slower but steady pace due to affordability constraints. Currently, tenants in London spend 43% of their income on rent. Savills predicts a 14.2% overall growth in London rents by 2029, slightly below the national average but still an attractive prospect for international investors looking for stable returns.
What This Means for UAE Investors
For UAE investors, the forecasted rental growth in the UK presents an exceptional opportunity. By investing in energy-efficient and well-located properties, investors can achieve consistent returns while diversifying their portfolios internationally. The UK’s buy-to-let market remains a reliable choice for wealth generation, even amid evolving regulations.
conclusion
Our expert team specialises in helping UAE investors navigate the UK property market. Visit our website to learn more about exclusive opportunities tailored to your investment goals.
