Buying UK property under Sharia law

The core principles of Islamic finance prohibit various western financial transactions including the payment or receipt of interest (Riba) which is considered to be exploitation of the borrower under Sharia law. This presents difficulties for followers of Islam who wish to purchase UK property but cannot afford to buy it outright and do not want to participate in interest-based lending.

Some financial institutions have developed financial arrangements to facilitate the purchase of property in a way that is compliant with Sharia law. While such alternatives are increasing in popularity there are still relatively few financial institutions willing and able to offer them including most high street banks. While Sharia-compliant financing structures follow the principles of Islamic law they are not confined to individuals who practise the Islamic faith.

In the same way the UK legislation introduced over the past decade is not limited...