Research points to sustained GCC interest in UK homes, with London and key regions leading demand
Gulf investors are expected to remain active in the UK housing market into 2026, with London still drawing the largest share of interest and regional centres such as Scotland and the North West gaining ground.
According to new analysis by Sharia’a-compliant international property finance provider Nomo using data from property portal Rightmove, London has retained its position as the leading destination for Gulf Cooperation Council (GCC) buyers over the past year, accounting for 23% of demand, with its status as a global investment centre continuing to appeal to Gulf-based clients.
Scotland and the North West have also gained traction, representing 19% and 18% of GCC demand respectively, as investors look to lower entry prices and stronger rental returns outside the capital.
The study suggests that GCC purchasers increasingly see the UK as a market for long-term ownership and relocation. Demand for houses has risen by 6%, while the “second stepper” segment has climbed by 5%, pointing to buyers trading up rather than simply entering the market.
Activity remains concentrated among investors from the United Arab Emirates and Saudi Arabia, whose demand is broadly in line with 2024 levels. Interest from Qatar has increased by 2% year on year, and together these three countries accounted for 86% of all GCC enquiries up to September.
Source: Nomo
According to the report, volatility in the global economy has reinforced the appeal of the UK’s political stability, particularly for those targeting properties below £2 million. That backdrop has helped support consistent GCC investment volumes in UK residential property through 2025.
Interviews with UK-based brokers for the research show that GCC buy-to-let purchasers are increasingly using limited companies, especially special purpose vehicles (SPVs), to hold their assets. This shift is described as part of a more structured, planning-led approach, with SPVs used to seek tax efficiencies, support estate planning and build a clearer financial footprint in the UK.
“Property finance providers in the UK played a crucial role in supporting evolving GCC demand in 2025, adapting their products to better meet the needs of overseas buyers,” said Layla Hamidian (pictured right), head of property finance sales and servicing at Nomo.
“Last year, property finance providers became more flexible in both pricing and structure, introducing higher finance-to-value ratios, cashback incentives and legal-fee support to attract and retain Gulf clients.
“Now in 2026, we predict that demand from the GCC for UK residential property has the potential to be boosted by falling borrowing costs and an improved macroeconomic outlook.”
For mortgage professionals, the findings underline the importance of understanding the specific requirements of GCC buyers, including appetite for regional markets, preferences for house purchases and the increasing use of corporate structures such as SPVs.
The research also points to regulatory and legislative developments, including the Renters’ Rights Act, as key considerations for advisers working with overseas landlords in the year ahead.
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