By Sarah Townsend
Rising rents in the UK are prompting UAE-based Brits to buy investment properties back home
British expats in the UAE are taking advantage of rising rents in the UK to snap up buy-to-let properties, experts report.
Rental prices of buy-to-let properties in the UK have surged in the last quarter, not just in London but across most of the country, according to new research.
Property management agency Homelet’s quarterly rental index found that rental prices for the three months to April 2015 rose by 10 percent on average, but the regions are outstripping London in terms of rental growth.
Average rental values for new tenancies in London (£1,436 per calendar month) were £100 more expensive per month when compared to average rental values in the same period in 2014 (£1,336 per calendar month), the data revealed.
However, when London is excluded, the average UK rental value in the three months to April was £730 per calendar month - 7.4 percent higher than in the same period last year when average rental value was £680 per calendar month.
All regions apart from Wales saw increases of between three and eight percent in average rental values in the three months to April, compared to the same period last year. Wales saw a one percent decline.
Offshore bank Skipton International, which operates out of the UK’s Channel Islands, reported this week that it has experienced a surge in interest in the buy-to-let sector from expats in the UAE since launching a range of mortgages for Brits living and working abroad last year.
Jim Coupe, managing director of Skipton International, said: “We’ve had interest from all over the world, but particularly the UAE.
“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 where rental yields are looking far more attractive for buy-to-let investors.”
Data from property lending platform LendInvest released figures on Monday showing that the highest rental yield postcodes in the UK from the first quarter of this year are found in cities including London, Birmingham, Ipswich, Liverpool and Glasgow.