Non-British landlords establish a fifth of rental properties companies
Foreign Investment in UK Buy-to-Let Market on the Rise
The UK buy-to-let (BTL) market is witnessing a significant increase in foreign investment, with non-UK nationals accounting for approximately 20% of new BTL incorporated companies in 2025, up from 13% in 2016[2].
Indian nationals lead this trend, with 684 new BTL companies established last year, followed by Nigerian investors who have shown a notable increase since 2020[2]. Other significant groups include Polish and Irish investors.
This investment shift is moving from London to lower-value markets outside the capital, where rental demand and house price growth are strong[2]. Runnymede in Surrey has the highest share of new companies set up by non-UK nationals this year, at 59%.
UK property prices have remained resilient, especially in cities with strong rental demand such as Manchester, Birmingham, Liverpool, and Leeds[1]. Rental demand continues to grow nationally, supported by strong tenant demand in urban centers[1][3]. Buy-to-let mortgage interest rates are falling, and lenders are increasingly competing to serve landlords, offering products tailored for limited company buy-to-let investors[1][3].
Non-resident investors often operate through limited companies, benefiting from corporation tax (currently 20%) on rental income and the ability to claim deductions, which can be advantageous compared to personal taxation[4].
Regions outside the capital, such as the East Midlands, West Midlands, and Scotland, have seen the largest growth in foreign ownership of buy-to-let companies[2]. In London, 27% of newly-registered buy-to-let companies this year are owned by non-UK nationals, with the highest proportion in Kensington & Chelsea (54%) and Hammersmith & Fulham (51%)[2].
Notably, Eastern European nationalities have bucked the trend, though. Both Polish and Romanian nationals now make up a larger share of new buy-to-let shareholders than they did in 2016[2].
Landlords who own property in their own name only receive tax relief based on 20% of their mortgage interest payments. In contrast, company landlords are taxed purely on profit[4]. This tax advantage, coupled with the potential for lower corporation tax and the ability to claim deductions, makes the use of a limited company as an ownership structure for BTL properties increasingly popular.
Foreign investors may or may not reside in the UK. They are also exploring specialized sectors like holiday let and short-term rental markets, along with commercial property investments, which diversify their portfolios and may provide different risk and yield profiles[4].
The number of buy-to-let companies increased by 332% between February 2016 and February 2025, going from 92,975 to 401,744[2]. This trend shows no signs of slowing down, as the UK buy-to-let market continues to attract foreign investors seeking stable rental income and long-term capital growth.
Sources: 1. Hamptons 2. The Guardian 3. Property Wire 4. Property Investor Today
- Foreign investors, particularly those from India, are leading the rise in the UK's buy-to-let (BTL) market, with 684 new BTL companies established by Indian nationals last year alone.
- Investors from countries like Poland and Ireland are also significantly contributing to the BTL market, with strong rental demand and house price growth in regions outside London attracting their attention.
- As the UK buy-to-let market continues to offer attractive opportunities for stable rental income and long-term capital growth, foreign investors are increasingly using limited companies to benefit from lower taxes and potential deductions, and expanding their portfolios by exploring specialized sectors such as holiday let and short-term rental markets and commercial properties.
