introduction
The UK’s buy-to-let sector has hit a major milestone, with average rental yields reaching 7.11% in April 2025. This is the highest level since February 2011, offering a strong incentive for UAE-based investors looking to invest in stable, income-generating assets abroad.
Investment opportunities
What’s Behind the Rise?
The combination of rising rents and easing house price inflation has driven this yield growth. A shortage of rental properties and consistent tenant demand are creating upward pressure on rental income—ideal conditions for investors.
Compared to the 6.94% yield at the end of 2024, the current 7.11% reflects a year-on-year increase of 40 basis points. It’s a clear signal of a buoyant rental market.
Where Are the Best Yields in the UK?
Wales leads the UK with yields at 8.43%, followed by other regional cities with strong demand and affordable property prices. Greater London remains the lowest at 5.78%, although even this figure continues to improve.
Which Real Estate Strategies Deliver the Most?
UAE investors looking to maximise returns may want to consider HMOs (Houses in Multiple Occupation), which achieved yields of 8.50% in April 2025. These higher-yielding real estate strategies offer a way to enhance income while maintaining long-term value.
Industry Insight: UK Market Remains Resilient
Russell Anderson, Commercial Director at Paragon Bank, noted:
“Our latest lending data confirms the strength of the UK rental market. Even amid global uncertainty, the fundamentals of UK real estate remain strong—particularly in high-demand regions and for investors focused on higher-return property types.”
conclusion
UK real estate continues to offer stable returns, legal protections, and consistent tenant demand. With yields at a 14-year high, UAE-based individuals seeking overseas investment options should seriously consider the UK market for both diversification and long-term income. Visit www.henley-capital.com to view our tailored UK investment opportunities for UAE investors.
