Over the past few years, the way overseas investors from the Gulf purchase property in the UK has changed substantially. More and more British Expats living in the UAE are now looking away from London in favour of Manchester and Birmingham for their property investments. This is down to a few main factors: the market trends of expat mortgages UK, rental yield opportunities and the growing number of investors from the Gulf buying outside London who’ve seen big gains.
Strong Market Trends of Expat Mortgages UK in Manchester and Birmingham
Both Manchester and Birmingham are favoured by investors as top places to invest in UK property. These cities appeal greatly to investors in the UAE thanks to their steady growth.
Here’s what makes expat mortgages UK such an interesting topic for those buying from abroad.
- Sustained Capital Growth: Property prices have risen by over 20% in Manchester in the past five years, and Birmingham has seen similar gains.
- Regeneration and Infrastructure: Major regeneration initiatives like HS2 and extensive city centre redevelopment have significantly enhanced the long-term investment potential of these locations.
- Thriving Job Market: Sectors like technology, finance and education are building employment and creating more demand for housing.
- Rising Population: The growing number of urban dwellers in Manchester and Birmingham means there’s a steady need for both purchased and leased accommodation.
- London vs Affordable Cities: The lower costs of properties in cities outside of London mean that they’re more affordable for overseas buyers.
Attractive Rental Yield Compared to London
Property Investors in cities like Manchester and Birmingham often see better profits than they’ll typically get in London. These positive returns are encouraging more UK expats living in the UAE to consider investment opportunities outside of London.
There are many big reasons why the buy to let mortgage UK expat market outside of London is seeing such substantial growth.
- Gross Rent Returns: Both Manchester and Birmingham offer investors gross yields of 5%–7%, whereas London only gives 3–4%.
- High Rental Demand: The high number of students at universities and young professionals means there’s rarely a drop in rental occupancy in these cities.
- Property Is More Affordable: Prices in Manchester, Birmingham and other UK cities like Glasgow are much lower than they are in London, which makes it easier for investors to build a portfolio.
- Financing Leverage: With buy-to-let mortgages, expats can make their capital go further by investing in rental properties in Manchester and Birmingham.
- Continued Urban Growth: Ongoing regeneration projects make these cities very prosperous, which maintains high property values and interest amongst renters.
Rising Gulf Buyer Interest in Buy to Let Mortgage for Expats
Historically, people from the Middle East who were interested in buying UK property looked straight to London without any further consideration. However, rising property prices, changing work patterns and growing Gulf buyer interest outside London have moved the focus beyond the capital in recent years.
UK expats in the UAE are seeing the advantages of buying property in northern UK cities. The “Levelling Up” initiative has led to the UK Government pouring billions into upgrading roads and railways in the north, including HS2 and similar projects.
Today, many mortgage lenders and banks are offering property financing options specifically for non-UK residents. This means they can buy property even without a UK credit score or a permanent home in the country.
Flexible Expat Mortgage Options
More and more lenders are offering expat buy-to-let mortgage UK products that mean foreign income, non-UK credit and cross-border finances don’t stand in the way of overseas investors’ plans.
In response to this demand, mortgage brokers specialising in expat mortgages UK have expanded their services to include personalised consultation, document management assistance and property valuation support.
Navigating the Legal and Tax Landscape
Buying UK property as a non-resident comes with tax and legal obligations. These can include stamp duty, capital gains tax and income tax. This is why it’s essential to get professional advice to remain compliant and avoid costly mistakes. Many expat mortgage advisors work closely alongside legal and tax experts to offer end-to-end support to overseas investors.
Conclusion
The focus on Manchester and Birmingham by Gulf investors shows no signs of slowing down – it reflects a new and evolving investment strategy. Market trends such as expat mortgages, higher rental yields, regional economic growth and improved transport infrastructure are making the appeal of these cities even stronger.
British Expats living in the UAE can now access expat buy-to-let mortgage UK products to pursue opportunities that were previously out of their reach. Those aiming for capital growth or high rental returns can easily find the right opportunities within the UK’s regional property market, especially with expert guidance and tailored support from Expat Mortgages UK.
Looking to invest in Manchester or Birmingham with a UK expat mortgage?
Get in touch with our expert team today to explore tailored mortgage options designed with UAE expats in mind. We are ready to guide you every step of the way to help you secure the best UK property investment deal for you.