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- Completely hands off & hassle-free
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INVESTING IN SOCIAL HOUSING UK
Government-backed social housing contracts with high yields and long 5 to 10 year leases.
- Completely hands off & hassle-free
- Government backed contracts
- Fantastic yields
- Multi package options
Kickstart your passive income by investing in social housing!
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
The Property Sourcing Company specialises in sourcing and securing Shariah-compliant property investments for investors. We have established relationships with trusted Shariah-compliant property developers, ensuring access to exclusive Halal off-market opportunities.
Our Shariah compliant property investments present a unique opportunity that combines financial security, adherence to Islamic principles and the possibility of it being hands off.
The Property Sourcing Company’s expertise and established relationships with the Shariah-compliant sector helps streamline the acquisition process, making these property investments and attractive option for investors seeking a reliable and ethically sound investment.
WHAT ARE THE BEST HALAL PROPERTY INVESTMENTS?
When determining the best Halal property investments, it’s important to consider factors such as profitability, stability, ethical considerations and alignment with your Islamic principles. Below are some of the best Halal property investment options for Muslim investors, highlighting why they might be particularly advantageous:
House in Multiple Occupation (HMO)
HMOs tend to generate more income per property than single residential lets because each room can be rented individually. Multiple tenants reduce the risk associated with vacancy, as the loss of one tenant doesn’t mean the entire property is vacant.
When managed ethically and financed through Sharia-compliant methods, HMOs provide an excellent balance of income and compliance with Islamic values. The Property Sourcing Company can identify high-potential HMO opportunities in your desired location, helping you maximise rental income while adhering to Islamic principles.
Buy to Let (BTL)
Residential Buy To Let properties are always in demand, offering a reliable and steady stream of rental income. Residential Buy To Let is fairly straightforward, making it an accessible option for first-time investors.
Ove time, residential properties often appreciate, offering potential for long-term wealth accumulation. The Property Sourcing Company can assist in locating prime residential Buy To Let properties in your area, ensuring they are both profitable and Sharia-compliant.
Multi-unit freehold block (MUFB)
Owning multiple units within one building allows for more efficient management and maintenance, reducing overall costs. The ability to rent units individually or as a block gives investors flexibility in how they generate income.
As with residential properties, MUFBs can appreciate in value, providing both rental income and capital growth. The Property Sourcing Company can help you find the perfect multi-unit freehold block that aligns with your investment strategy and Islamic values.
Commercial property investments
Commercial properties often offer higher rental yields compared to residential properties, which makes them a lucrative investment. Commercial leases usually run for several years, providing a stable and predictable income stream.
By carefully selecting tenants involved in Halal businesses (e.g. retail stores, offices), investors can ensure their income is from permissible sources. The Property Sourcing Company can assist you in finding the right commercial properties in your arena ensuring they meet both your financial goals and Islamic requirements.
Holiday Short-Term Lets
Holiday lets can generate significant income during peak tourist seasons, often outpacing traditional rental yields. These properties can be both an investment and a personal retreat, offering lifestyle benefits alongside financial returns.
With the growth of platforms like Airbnb, there is increasing demand for short-term holiday accommodations. The Property Sourcing Company can source ideal holiday let properties in high-demand tourist areas, ensuring they meet your investment criteria and Islamic standards.
Social Housing Investments
Social housing investments are also another winner for Halal investing. Social housing directly supports those in need by providing affordable, secure housing. This aligns closely with the Islamic principles of Zakat and Ihsan, making it not just a financial investment but also a moral one.
Social housing often involved long-term contracts with local authorities or housing associations providing a stable and predictable income stream. This reduces financial risk and offers peace of mind, which is particularly important for Muslim investors seeking Halal and secure investment options.
The Property Sourcing Company has expertise in identifying and securing properties that meet both your financial goals and Sharia compliance requirements. We understand the unique needs of Muslim investors and can guide you towards investments that align with your Islamic principles.
Commercial Buy To Lets, Social Housing Investments and HMOs stand out as the best Halal property investments due to their high returns, stability and flexibility. Commercial properties, in particular, offer excellent opportunities for steady, long-term income, especially when rented to Halal-compliant businesses.
For investors looking for a balance of simplicity, stability and long-term growth, residential buy to let properties are ideal. Meanwhile, MUFBs offer a scalable solution for those looking to manage multiple units efficiently.
Serviced accommodation and holiday short term lets are best for those seeking higher rental yields and are willing to manage the more active requirements of short-term tenants.
By working with The Property Sourcing Company, you can confidently navigate the property market, knowing that your investments are both profitable and aligned with your faith.
Start investing in Halal property opportunities across the UK!
Secure your financial future with The Property Sourcing Companys’ 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 said “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 various forms, including Buy To Let, Social Housing, Holiday Rentals, and more.”
“Let us handle the hard work so you can enjoy the benefits of your investment with peace of mind.”
Start investing in Halal property opportunities across the UK!
Secure your financial future with The Property Sourcing Companys’ 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 said “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 various forms, including Buy To Let, Social Housing, Holiday Rentals, and more.”
“Let us handle the hard work so you can enjoy the benefits of your investment with peace of mind.”
WHAT IS HALAL PROPERTY INVESTMENT?
Halal property investment is a type of investment that strictly adheres to Islamic law and follows Sharia-compliant financing. The term “Halal” is Arabic for “permitted” or “lawful,” and Halal investments are designed to align with ethical and sustainable principles rooted in Islamic teachings.
These investments are not merely about financial gain; they emphasise fairness, social responsibility and the betterment of society as a whole.
What are the principles of Halal property investments?
Halal property investments ensure that your wealth accumulation is in full compliance with Sharia law. This means avoiding interest, excessive uncertainty and impermissible activities. By choosing Halal investments, you can grow your wealth while adhering to your religious beliefs, which are essential for spiritual and moral integrity.
Here are the principles of Halal property investments:
Avoiding prohibited activities
Properties involved in Halal investments must not be used for activities that Shariah law deems immoral or impermissible. This includes prohibitions against gambling, pork, alcohol production or distribution, and other activities considered haram (forbidden).
The properties should ideally serve beneficial purposes such as residential, education or healthcare facilities which contribute positively to society and are in harmony with Islamic values.
Prohibition of Interest (Riba)
Islamic finance strictly prohibits the concept of riba, or interest. Therefore, Halal property investments must be structured in a way that avoids earning or paying interest. Instead, profits should be generated through legitimate business activities, such as rental income or the appreciation of the property’s value over time.
Financing arrangements like Musharakah (partnership) or Ijarah (leasing) are commonly used to ensure compliance with this principle.
Profit and loss sharing
A central tenet of Islamic financing is the equitable distribution of risk and reward. Investors in Halal property ventures must share in both the profits and losses. This principle promotes fairness and discourages exploitative practices, ensuring that all parties involved have a vested interest in the success of the investment.
Ethical and social responsibility
Beyond mere compliance, Halal property investments are designed to promote ethical governance and contribute to the social good. Investors are encouraged to consider the broader impact of their investments on the community and the environment.
This may involve supporting developments that provide affordable social housing, improve urban infrastructure or preserve natural resources.
WHAT ARE YOUR HALAL INVESTMENT FINANCING OPTIONS?
When it comes to funding your Halal property investments, there are several Shariah compliant models that investors can explore. Each of these models adheres to Islamic principles while providing viable alternatives to conventional investment methods.
Ijara (Islamic leasing)
Ijara is an Islamic leasing agreement where the financial institution buys a property and then leases it to you for a predetermined period. You pay rent, which is agreed upon in advance, and at the end of the lease term, the client may have the option to purchase the property.
Here is how Ijara works:
- The bank or financial institution buys the property on behalf of the client.
- The property is then leased to the client for a specific term, during which the client pays rent.
- The rent is structured in a way that covers the cost of the property and provides profit to the lender.
- At the end of the lease period, ownership of the property can be transferred to the client typically for a nominal fee.
Ijara ensures that the rent payments are not tied to any form of interest but are instead reflective of the property’s usage and the agreed-upon terms. The transparency in Ijara contracts provides a clear and Shariah-compliant pathway to property ownership.
Murabaha (cost-plus financing)
Murabaha is a popular Shariah-compliant financing model where the bank buys a house and sells it to the client at a higher price, which includes a profit margin. The client agrees to pay the purchase price in instalments over a specified period.
Here is how Murabaha works:
- The client identifies a property they wish to purchase.
- The bank buys the property at the market price.
- The bank then sells the property to the client at a marked-up price, which includes the bank’s profit.
- The client pays the marked up price in fixed instalments, free of any interest charges.
In a conventional mortgage, the bank lends money to the client to buy a property and charges interest on the loan. Murabaha, however, avoids interest altogether by allowing the bank to sell the property at a profit, which the client agrees to repay. This structure makes Murabaha a straightforward and transparent method of property financing within the boundaries of Islamic law.
Musharaka (Partnership)
Musharaka is a partnership-based investment model where both the investor and the financial institution contribute capital to purchase a property. The profits (or losses) from the investment are shared between parties based on their respective capital contributions.
How Musharaka works:
- Both the investor and the bank (or financial institution) contribute funds to buy a property.
- The ownership of the property is shared according to the proportion of each party’s investment.
- Profits generated from the property, such as rental income are shared according to the agreed-upon ratio.
- The investor can gradually buy out the bank’s share, eventually taking full ownership of the property.
While similar to a joint venture in conventional finance, Musharaka distinguishes itself by emphasising the equitable sharing of both profits and losses. In conventional joint ventures, the distribution of profits and losses might not always be proportionate or fair.
Musharaka ensures that all parties share the risks and rewards, fostering a spirit of collaboration and fairness in line with Islamic principles.
Cash funds
Investors with direct cash funds can buy properties outright, avoiding any form of interest (riba) altogether. This is the simplest and most direct method of ensuring your investment is fully halal.
Here is how investing with cash funds works:
- The investor uses their own cash funds to purchase the property outright.
- Since no financing is involved, there is no risk of riba, making the transaction entirely Sharia compliant.
- The investor gains full ownership of the property immediately and can begin earning rental income or using the property as desired.
Investing with cash funds is a clear, straightforward option that ensures total compliance with Shariah principles, offering both simplicity and peace of mind.
HOW TO CHOOSE THE RIGHT SHARIAH COMPLIANT FINANCE MODEL
When comparing these Shariah-compliant finance models with conventional methods, the key differences lie in their adherence to islamic law, the prohibition of interest (riba), and the emphasis on ethical and fair transactions.
Conventional investment methods often prioritise profit maximisation, sometimes at the expenses of ethical considerations. In contrast, Shariah-compliant financing models like Ijara, Murabaha, and Musharaka prioritise social justice, transparency and the equitable distribution of wealth.
- While Ijara is ideal for those who prefer a lease-to-own arrangement with a clear and fixed payment structure.
- Murabaha suits investors who want a straightforward buying process with predetermined costs and no involvement of interest.
- Musharake is perfect for those who seek a partnership approach, sharing both the investment’s risks and rewards while gradually increasing ownership.
But, those who have the means, using cash funds is often the best Shariah-compliant financing model. This is because cash funds eliminate any involvement with interest, ensuring that your investment is fully aligned with islamic principles from the outset.
By purchasing properties outright, you can avoid any potential Shariah compliance issues associated with financing.
What is Shariah compliant property investment?
Shariah compliant property investment refers to investing in the housing market in a manner that follows the principles of Islamic law, or Shariah. These principles govern the ethical and moral framework within which Muslims are encouraged to conduct their financial and business activities.
Property is generally deemed Shariah compliant because its value typically increases through natural market growth rather than through the exploitation of others.
Unlike speculative investments or interest-based financial products, property investment is rooted in tangible assets that appreciate due to market dynamics, making it a suitable and ethical form of wealth accumulation. This is why property often forms a significant part of Shariah-compliant investment portfolios.
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WHY THE PROPERTY SOURCING COMPANY?
At The Property Sourcing Company, we specialise in identifying and securing properties that align with both your financial goals and your faith. Our deep understanding of Islamic finance principles ensures that every investment we present is fully Shariah-compliant.
From sourcing properties to structuring the financing, we will meticulously follow Islamic guidelines, so you can invest with confidence, knowing your portfolio reflects your values.
Given our fast-paced business model, we prioritise working with direct cash buyers over mortgage buyers. This approach allows us to speed the process and ensure a smoother, more efficient transaction for all parties involved.
Our commitment to integrity and excellence has earned us the trust of Muslim investors across the country. We have a proven track record of helping clients achieve their investment goals while staying true to their religious beliefs.
Investing in property doesn’t have to be complicated. At The Property Sourcing Company, we make the process seamless and stress-free. From the initial consultation to the ongoing property portfolio growth, our team handles every detail with professionalism and care.
HALAL PROPERTY INVESTMENT UK FAQs
Have you got a question about investing in Shariah compliant property that we’ve not yet answered?
Not to worry, we’ve pulled together some of the questions we regularly get asked and answered them for you below:
In conventional property investments, interest-based loans are common, especially bridging loans. Halal property investment avoids interest-bearing loans, instead using Islamic finance methods like:
- Ijara: A lease to own arrangement where the investor leases a property with an agreement to eventually purchase it.
- Musharaka: A partnership where profits and losses are shared between the investor and the financier according to a pre-agreed ratio.
- Murabaha: A cost-plus agreement where the financier buys a property and sells it to the investor at a profit margin, with payment usually in instalments.
Mortgage interest, usually used in conventional property funding is considered riba, which is prohibited in Islam. Halal property investments use alternative financing methods to avoid interest.
Yes, investing in rental properties can be Halal if the financing structure and the use of the property comply with Islamic principles. The income generated from rent must come from permissible sources, and the property must not be used for haram activities.
The Property Sourcing Company can identify rental properties that are not only financially sound but also align with Halal principles. This includes ensuring that the properties are used for permissible activities and are located in areas that are conducive to Halal business or residential use.
Some REITs are Shariah compliant, but not all. To be considered Halal, a REIT must avoid interest based financing and ensure that the properties in the portfolio are used for permissible purposes. It’s important to consult with a Shariah advisor or check if the REIT is certified as Shariah-compliant.
Although we do not offer REITs, we can help diversify your investment portfolio by identifying a range of Shariah compliant properties, by conducting thorough checks to ensure that the rental income is derived from permissible sources, verifying tenant’s businesses and ensuring the property’s use is Halal.
Properties that are used for permissible activities according to Islamic law, such as residential homes, office buildings and retail spaces (not selling haram products) are generally considered Halal. Properties used for gambling, alcohol sales or other haram activities are not permissible.
The Property Sourcing Company specialises in finding properties that are suitable for Halal investment, by ensuring that the properties are not involved in haram activities.
As part of our offering, we can source properties to order. This means that if you need a Halal property in Roundhay, Leeds, or anywhere else in the UK, then we can find a property that suits your needs.
Furthermore, as an extension of this offering, we can also find you Social Housing Opportunities, which include long lease terms and high rental yields, all while helping to house people who desperately need housing.
HALAL PROPERTY INVESTMENT UK FAQs
Have you got a question about investing in Shariah Compliant property that we’ve not yet answered?
Not to worry, we’ve pulled together some of the questions we regularly get asked and answered them for you below:
In conventional property investments, interest-based loans are common, especially bridging loans. Halal property investment avoids interest-bearing loans, instead using Islamic finance methods like:
- Ijara: A lease to own arrangement where the investor leases a property with an agreement to eventually purchase it.
- Musharaka: A partnership where profits and losses are shared between the investor and the financier according to a pre-agreed ratio.
- Murabaha: A cost-plus agreement where the financier buys a property and sells it to the investor at a profit margin, with payment usually in instalments.
Mortgage interest, usually used in conventional property funding is considered riba, which is prohibited in Islam. Halal property investments use alternative financing methods to avoid interest.
Yes, investing in rental properties can be Halal if the financing structure and the use of the property comply with Islamic principles. The income generated from rent must come from permissible sources, and the property must not be used for haram activities.
The Property Sourcing Company can identify rental properties that are not only financially sound but also align with Halal principles. This includes ensuring that the properties are used for permissible activities and are located in areas that are conducive to Halal business or residential use.
Some REITs are Shariah compliant, but not all. To be considered Halal, a REIT must avoid interest based financing and ensure that the properties in the portfolio are used for permissible purposes. It’s important to consult with a Shariah advisor or check if the REIT is certified as Shariah-compliant.
Although we do not offer REITs, we can help diversify your investment portfolio by identifying a range of Shariah compliant properties, by conducting thorough checks to ensure that the rental income is derived from permissible sources, verifying tenant’s businesses and ensuring the property’s use is Halal.
Properties that are used for permissible activities according to Islamic law, such as residential homes, office buildings and retail spaces (not selling haram products) are generally considered Halal. Properties used for gambling, alcohol sales or other haram activities are not permissible.
The Property Sourcing Company specialises in finding properties that are suitable for Halal investment, by ensuring that the properties are not involved in haram activities.
As part of our offering, we can source properties to order. This means that if you need a Halal property in Roundhay, Leeds, or anywhere else in the UK, then we can find a property that suits your needs.
Furthermore, as an extension of this offering, we can also find you Social Housing Opportunities, which include long lease terms and high rental yields, all while helping to house people who desperately need housing.
HALAL PROPERTY INVESTMENT UK FAQs
Have you got a question about investing in halal housing that we’ve not yet answered?
Not to worry, we’ve pulled together some of the questions we regularly get asked and answered them for you below:
In conventional property investments, interest-based loans are common, especially bridging loans. Halal property investment avoids interest-bearing loans, instead using Islamic finance methods like:
- Ijara: A lease to own arrangement where the investor leases a property with an agreement to eventually purchase it.
- Musharaka: A partnership where profits and losses are shared between the investor and the financier according to a pre-agreed ratio.
- Murabaha: A cost-plus agreement where the financier buys a property and sells it to the investor at a profit margin, with payment usually in instalments.
Mortgage interest, usually used in conventional property funding is considered riba, which is prohibited in Islam. Halal property investments use alternative financing methods to avoid interest.
Yes, investing in rental properties can be Halal if the financing structure and the use of the property comply with Islamic principles. The income generated from rent must come from permissible sources, and the property must not be used for haram activities.
The Property Sourcing Company can identify rental properties that are not only financially sound but also align with Halal principles. This includes ensuring that the properties are used for permissible activities and are located in areas that are conducive to Halal business or residential use.
Some REITs are Shariah compliant, but not all. To be considered Halal, a REIT must avoid interest based financing and ensure that the properties in the portfolio are used for permissible purposes. It’s important to consult with a Shariah advisor or check if the REIT is certified as Shariah-compliant.
Although we do not offer REITs, we can help diversify your investment portfolio by identifying a range of Shariah compliant properties, by conducting thorough checks to ensure that the rental income is derived from permissible sources, verifying tenant’s businesses and ensuring the property’s use is Halal.
Properties that are used for permissible activities according to Islamic law, such as residential homes, office buildings and retail spaces (not selling haram products) are generally considered Halal. Properties used for gambling, alcohol sales or other haram activities are not permissible.
The Property Sourcing Company specialises in finding properties that are suitable for Halal investment, by ensuring that the properties are not involved in haram activities.
As part of our offering, we can source properties to order. This means that if you need a Halal property in Roundhay, Leeds, or anywhere else in the UK, then we can find a property that suits your needs.
Furthermore, as an extension of this offering, we can also find you Social Housing Opportunities, which include long lease terms and high rental yields, all while helping to house people who desperately need housing.
START BUILDING WEALTH
By choosing The Property Sourcing Company, you will benefit from our deep market expertise and comprehensive services, from property sourcing to purchase to management.
By investing in halal housing with us, you not only gain financially but also contribute to addressing the housing crisis and fostering stronger communities.
Align your investments with your values and enjoy the dual benefits of attractive financial returns and meaningful social impact.
START BUILDING WEALTH
By choosing The Property Sourcing Company, you will benefit from our deep market expertise and comprehensive services, from property sourcing to purchase to management.
By investing in Shariah-compliant property with us, you not only gain financially but also contribute to addressing the housing crisis and fostering stronger communities.
Align your investments with your values and enjoy the dual benefits of attractive financial returns and meaningful social impact.