Dubai: A number of expatriates living in the UAE are focusing their interest overseas, tempted by the rising rents and attractive mortgage deals in traditional property hotspots like the United Kingdom.
Offshore bank Skipton International told Gulf News that British nationals residing in the UAE are realising that with the housing market in the UK showing long-term inflation, buying a property in their home country while working overseas is a smart investment move.
“We’ve had interest from all over the world, but particularly the UAE,” said Jim Coupe, managing director of Skipton International.
According to new research from Homelet, a British property management agency, rental prices for the three months to April across the UK have gone up. London’s housing rents rose by 7.5 per cent, but the other areas are fast catching up.
Rents in the regions are particularly outstripping those in the UK capital, with the West Midlands, East Anglia and South West all seeing greater increases at 7.9 per cent, 8.4 per cent and 15.5 per cent, respectively.
Coupe said a number of UAE investors have snapped up flats and apartments located in Greater London or South East England. “Often, however, applicants will purchase property in a geographical area known to them and where they may have family members who can assist with the management of the property,” Coupe told Gulf News.
Skipton International has launched a range of mortgages for British nationals living overseas, offering fixed rates as low as 4.74 per cent to 5.24 per cent. Real estate investors also have the option to avail themselves of a five-year discount at 4.49 per cent.
Coupe said that among the mortgage applications they have received from British expatriates around the world, 15 per cent have originated from the UAE. “[That is] a significant proportion as we offer these mortgages worldwide, with specific country exceptions,” Coupe said.
“Our customers are showing they are making the most of the buy-to-let opportunity and with many now viewing the London property market as overheated, demand is set to increase for properties in other areas of the UK when rental yields are looking far more attractive for buy-to-let investors,” said Coupe.
