Non-British citizen landlords establishment of five buy-to-let businesses
Foreign Investment in UK Buy-to-Let Properties on the Rise
A significant trend in the UK property market has emerged over the past decade, with an increasing share of buy-to-let (BTL) properties being owned by non-UK citizens. According to an analysis by Hamptons, a leading estate agent, 20% of newly established BTL limited companies in 2025 have at least one non-UK national shareholder, up from 13% in 2016[1].
This growth is evident across the UK, with the number of new BTL companies projected to reach about 67,000 in 2025, with roughly 13,500 partly owned by non-UK nationals[1][5]. London remains a hotspot for foreign investment, with 27% of new BTL companies being owned by non-UK nationals[2]. The affluent boroughs of Kensington and Chelsea and Hammersmith and Fulham have the highest concentration, with over 50% of new BTL companies owned by non-UK nationals[2].
However, there is a geographical shift happening, with increasing presence of non-UK investors in lower-value markets outside London. The East Midlands, West Midlands, Scotland, and Yorkshire & Humber have seen the largest growth in foreign ownership of BTL companies, with the share of non-UK owned BTL firms almost doubling over the last decade[2][4].
The composition of non-UK shareholders has evolved as well. Eastern Europeans (like Polish and Romanian nationals) and Nigerians have become significant groups among non-UK BTL investors, with Nigerians being the second-largest non-UK group in 2025[2]. Landlords from India made up the largest group of new registrations in the last year, followed by those from Nigeria, Poland, Ireland, and Italy[3].
The rise in foreign investment in UK BTL properties is due to several factors. Using a limited company as an ownership structure for BTL properties has become more popular due to potential tax benefits[6]. Company landlords can build up profits faster by reinvesting them towards another property, as they can fully offset all mortgage interest against their rental income[7]. Additionally, they can pay lower corporation tax compared to income tax for individual landlords[6].
Lender attitudes towards expat and non-UK borrowers have also become more favourable in 2025, with more tailored mortgage products and better terms available, supporting continued growth in foreign investor participation[3]. This trend is expected to continue, with the current figures indicating a broadening and deepening trend of international participation in UK buy-to-let property through limited companies.
[1] Hamptons (2025): Foreign Ownership of UK Buy-to-Let Properties. [2] Hamptons (2025): The Growth of Foreign Investment in UK Buy-to-Let Properties. [3] Financial Times (2025): Mortgage Products Tailored for Foreign Buyers Boost UK Property Market. [4] The Guardian (2025): Non-UK Investors Flock to Lower-Value Markets in UK Property Market. [5] Companies House (2025): Limited Companies Registered in the UK. [6] HM Revenue & Customs (2025): Corporation Tax vs Income Tax for Landlords. [7] Hamptons (2025): The Advantages of Limited Companies for Buy-to-Let Investors.
- Foreign investors are increasingly participating in the UK buy-to-let property market, with the number of non-UK nationals owning a significant portion of newly established buy-to-let limited companies.
- The growth in foreign investment is not limited to London; regions like the East Midlands, West Midlands, Scotland, and Yorkshire & Humber have seen a significant increase in foreign ownership of buy-to-let companies.
- Investing in UK real-estate through buy-to-let properties offers potential tax benefits, such as the ability to fully offset mortgage interest against rental income and pay lower corporation tax, making it attractive for foreign investors.
