DISCOVER HALAL PROPERTY INVESTMENTS ACROSS THE UK
We’re your trusted destination for UK Sharia-compliant property investments
Written by: Jessica Chambers, Reviewed By: Jonny Christie
First Published: Aug 22, 2024 | Last Updated: Sep 05, 2025
If you’re looking for affordable and quality-assured Halal property budgets to suit your aspirations and budget, you’re in good hands.
At The Property Sourcing Company, we’re:
- Respectfully hands off & hassle-free
- Dedicated to providing ethical property investment opportunities
- Committed to securing you favourable rental yields
- Known for offering multi-package options
Table of Contents
- See our current Halal property investment opportunities
- Is it Halal to invest in property?
- The types of Halal property investment opportunities we offer
- Why invest in Shariah-compliant property with us
- What are your Halal property investment financing options?
- Secure your next Shariah-compliant investment with The Property Sourcing Company
- FAQs
Explore our current Sharia-complaint property investment opportunities now and for personal advice, get in touch. One of our friendly in-house specialists will be happy to source you Halal-compliant investments based on your needs.
Scunthorpe, DN16
This property is a Buy, Refurbish, Rent, Refinance deal that could achieve £700-750pcm and 8.3% yield.
25% BMV
Bakewell, DE45
This Grade II listed property is suitable for an AirBnB and is achieving £51,000 gross rental per annum with 70% occupancy.
22.1% BMV
Tadley, RG26
Not for the faint-hearted, this is a complete renovation project, a great property with high demand in the area, the perfect flip for an experience investor.
45% BMV
Property investment can be Halal (permissable) providing you follow specific Sharia-compliant principles.
Many traditional ways of investing in property can conflict with core Halal or Shariah-complaint principles. However, as long as every step of the process approached with due care and consideration, you can invest in property permissibly.
What are the core principles of Halal property investments?
Halal property investments ensure that when you accumulate wealth, it complies with Sharia law.
This means avoiding financial interest, entering deals that come with significant levels of uncertainty, and navigating away from impermissible activities.
Here are the core principles of Halal property investments for your reference:
Avoiding prohibited activities
Properties involved in Halal investments must not be used for purposes deemed immoral or impermissible by Shariah law. These purposes or activities include gambling, pork, the production or distribution of alcohol, and other activities seen as haram (forbidden).
With this in mind, your properties should serve beneficial or productive purposes, like:
✔️ Providing secure residential homes
✔️ Creating educational or community spaces
✔️ Healthcare or treatment centres
Prohibition of Interest (riba)
Islamic finance strictly prohibits the idea of riba, or interest. All Halal property investments need to be structured in a way that avoids accruing or paying interest. Instead, you need to generate your profits through legitimate business activities, like regular rental income or capital appreciation.
FYI: You can use Shariah-compliant financing arrangements like Musharakah (partnership) or Ijarah (leasing) to remain compliant when investing in Halal properties.
Profit and loss sharing
A key belief of Islamic financing is evenly balancing risk with reward, which investors in Halal property ventures must share in the profits and the losses. This principle promotes allround fairness while discouraging exploitative practices, ensuring that all parties involved are protected and earn an equal share of success.
Ethical and social responsibility
Beyond compliance alone, Halal property investments promote ethical governance and contributions toward social progress. With this principle in mind, you’re encouraged to consider the wider impact on your environment or community as a Halal investor.
As such, you should choose investments that support developments that provide affordable social housing, improve urban infrastructure or preserve natural resources.
When deciding the best Halal property investments for your needs, you should consider factors including profitability, stability, ethos, and alignment with your Islamic principles.
To help guide your decision, here are some of the best Halal property investment options we offer for Muslim investors.
House in Multiple Occupation (HMO)
HMOs typically generate more income per property than single residential lets because you can rent each room individually. Housing multiple tenants also reduces the risk associated with ‘void periods’ as the loss of one tenant doesn’t mean the entire property will become vacant.
When managed ethically and financed through Sharia-compliant methods, HMOs offer an ideal balance while complying with Islamic values. We can identify high-potential HMO investments in your preferred location.
Buy-to-let (BTL) properties
Residential buy-to-let properties are in constant demand, offering a steady stream of rental income.
Residential buy-to-let properties are fairly straightforward, making them an accessible option for first-time investors. Residential properties usually appreciate over time, offering a strong potential for long-term wealth accumulation.
Multi-unit freehold block (MUFB)
Owning multiple units within one building makes daily management and maintenance efficient, which can reduce your overall costs. The ability to rent units individually or as a block can also give you flexibility in how you generate income as an investor.
As with residential properties, MUFBs can also appreciate in value, providing the magic combination of rental income and capital growth.
Commercial property investments
Commercial properties often offer higher rental yields compared to residential properties, making them a potentially rewarding Halal investment. Commercial leases typically run for several years, which means they provide a stable and predictable income stream.
By carefully selecting your commercial tenants, you can ensure you’re generating income from permissible sources.
Short-term holiday lets
Holiday lets can generate significant income during peak tourist seasons and even outpace traditional rental yields. Holiday lets can also serve as both a solid financial investment and a personal retreat when you need to get away.
With the growth of platforms like Airbnb, there’s a growing demand for short-term holiday accommodations across the UK.
Social housing investments
Social housing investments are popular among savvy Halal investors looking to make a difference.
Social housing directly supports people in the local community by providing secure, affordable housing. As such, social investments align closely with the Islamic principles of Zakat and Ihsan, making them a moral and financial investment.
FYI: Social housing investments usually involve long-term contracts with local authorities or housing associations to create a stable and predictable income stream.
The Property Sourcing Company specialises in securing Shariah-compliant property investments for investors based on their specific aspirations and budgets.
We boast established relationships with trusted Shariah-compliant property developers, offering investors exclusive Halal off-market opportunities.
Our longstanding experience and connections mean that we can offer many of our Shariah-compliant investment properties for between 15% to 20% below market value.
Our Shariah compliant property investments present a unique opportunity that combine:
- Financial security
- Adherence to Islamic principles
- The possibility of it being hands off during the investment process
Our extensive expertise and strong connection with the Shariah-compliant sector streamlines the acquisition process, making the process as smooth and frictionless as possible.
If you’re interested in finding more about our processes and our latest Halal investment opportunities, book a personal consultation with one of our in-house specialists.
“What a great company. Bought 3 properties with them already. I have actually recommended it to my colleagues who are looking to get into property investing. Great BMV deals in the UK, if not the best. I have tried lots of sourcing company, this is just the best.”
— Atinuke
Halal property investment success story…
A new client came to us as they were interested in investing in a local social housing project. As a respected Halal investor, every step of the process needed to be Shariah-compliant.
Following an extensive consultation with our client, we established set budgets, aspirations, and target locations.
We leveraged our Shariah-compliant network to source social housing opportunities within a 60-mile radius of our client’s target location. After a series of conversations, ample research, and extensive compliance checks, we discovered a government-backed opportunity just outside our client’s preferred region.
Now our client is enjoying healthy regular returns from their investment and plays an active role in providing stable, amenable, and affordable housing for hundreds of people while remaining 100% Shariah-compliant.
There are several Shariah compliant models that investors can explore when looking to fund a Halal investment. Each of these models adhere to key Islamic principles while providing viable alternatives to traditional investment methods.
Ijara (Islamic leasing)
Ijara is a form of Islamic leasing agreement where a financial institution buys a property and then leases it to you for a set period.
You pay rent at a pre-agreed rate and at the end of the lease term, you may have the option to purchase the property.
Here’s how Ijara works:
- The bank or financial institution purchases the property on behalf of the client
- The property is leased to the client for a specific term, where the client pays regular rent instalments
- The rent is structured in a way that covers the cost of the property while offering the lender profit
- At the end of the predetermined lease period, it’s possible to transfer ownership of the property to the client for a nominal fee
Ijara ensures that rent payments are not tied to interest in any way, but are instead reflective of the property’s usage and the pre-agree terms. The transparency in Ijara contracts offers a clear and Shariah-compliant means of property ownership.
Best for: Ijara is suitable for investors who prefer a lease-to-own arrangement with a clear and fixed payment structure.
Murabaha (cost-plus financing)
Murabaha is a popular Shariah-compliant financing model where the bank buys a house and sells it to the client for a higher pricepoint. The client then agrees to pay off the purchase price in regular installments over a specified period.
Here is how Murabaha works:
- The client identifies a property they want to purchase
- The bank purchases the property at the market price
- The bank sells the property to the client at a marked-up cost, which includes the bank’s profit.
- The client pays the marked-up price in set instalments, free of any interest charges
Murabaha avoids interest by allowing the bank to sell the property at a profit, which the client agrees to repay, making Murabaha straightforward, transparent, and within the boundaries of Islamic law.
Best for: Murabaha is suited to investors looking for a straightforward buying process with predetermined costs and interest involved.
Musharaka (partnership)
Musharaka is a partnership-based investment model where both the investor and the financial institution team up to secure a property. Profits (or in some cases, losses) from the investment are then shared between each party based on their respective capital contributions.
Here’s how Musharaka works:
- Both the investor and the bank (or financial institution) contribute funds to secure a property
- The ownership of the property is shared according to the proportion of each party’s initial investment
- Any profits generated from the property, including rental income, are shared according to a pre-agreed share or ratio
- The investor has the option to gradually buy out the bank’s share, eventually taking sole ownership of the property
Musharaka ensures that all parties share the risks and rewards, making it compliant with core Shariah principles.
Best for: Musharaka is perfect for those who prefer a collaborative approach to investment, sharing both the investment’s risks and rewards while gradually increasing ownership.
Cash funds
Investors with direct cash funds can buy properties outright and avoid any form of interest (riba) or repayment. This is the simplest and most direct method of keeping your investment strictly Halal.
Here’s how investing with cash funds works:
- The investor uses their personal cash funds to buy the property outright
- Since no financing is involved, there’s no risk of riba, making the transaction entirely Sharia compliant
- The investor gains full ownership of the property and can begin earning rental income or renovating and flipping the property at their leisure
Best for: This is the best option for any Halal investor who has the capital to take full control of their investment without any repayment terms to navigate.
Secure your financial future with The Property Sourcing Company’ s Shariah-compliant property investments and explore the potential for a truly passive income, depending on the service you choose.
Our CEO and Founder, Jonathan Christie explains:
“As the UK’s leading property solutions company, we are committed to working with people of all faiths to offer ethical investments that not only support local economies but also generate profitable returns.”
“Our Shariah-compliant property investments come in many forms, including buy-to-let, social housing, holiday rentals, and more.”
“We’ll handle the hard work so you can enjoy the benefits of your investment with peace of mind.“
– Jonathan Christie, CEO of The Property Sourcing Company
At The Property Sourcing Company, we’re truly off market. That means you won’t find our investment opportunities on your typical third-party marketplaces.
We offer a variety of Halal property investment options and a Shariah-compliant service tailored to your exact needs.
Are you ready to secure your next rewarding Halal property? Don’t delay, invest with us today.
In traditional property investments, interest-based loans are common, particularly bridging loans. To remain Shariah-compliant, Halal property investment avoids interest-bearing loans, instead using Islamic finance methods like:
- Ijara: A lease-to-own model where the investor leases a property with an agreement to eventually buy it in full.
- Musharaka: A partnership where profits and losses are shared between the investor and the financier based on a pre-agreed share.
- Murabaha: A cost-plus agreement where the financier buys a property and sells it to the investor at a profit, with payment usually made in regular installments.
Traditional mortgage interest is considered riba, which is not permissible in Islam. Halal property investments use these alternative financing methods to avoid interest and stay compliant.
Yes, investing in rental properties can be Halal if the financing structure and the use of the property are in line with Islamic principles. The income generated from any rent must come from permissible sources (residential housing, social housing, educational purposes or medical purposes) , and the property cannot be used for haram activities.
The Property Sourcing Company can find rental properties that are not only financially sound but also compliant with Halal principles. We’ll also ensure that these properties are used for permissible activities and based in areas that are conducive to Halal business or residential use.
Properties that are used for permissible activities according to Islamic law are considered Halal.
These include residential homes, office buildings, and retail spaces (those that don’t sell haram products), which are typically considered Halal. Properties used for gambling, alcohol sales or other haram activities are not permissible and, therefore, not seen as Halal.
Article Written By: Jessica Chambers
Jess is our Investment Team Manager, she has a wealth of experience in property investing and finance, working with a wide range of different types of investments from BTL, Flips, HMOs and more over the years. Experience she often shares on The Property Sourcing Company website.
Ready to Start Investing in HMO’s?
We can help find you a fantastic off-market opportunity that meets your personal requirements.
Discounted property with high yields
Transparent & honest throughout the process
We’re property experts with years of experience
Investment opportunities tailored to your requirements
WHY INVEST WITH US?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.