"While overseas-based investors are part of the picture, the majority of purchases by non-UK nationals reflect domestic demand"
- Aneisha Beveridge - Hamptons
One in five buy-to-let companies set up in the UK this year has at least one non-UK national shareholder, according to analysis by Hamptons. The figure, which now stands at 20%, has risen in nine of the past 10 years, up from 13% in 2016.
Hamptons' review of Companies House data reveals that 2025 is on track to see a record number of buy-to-let incorporations. At the current pace, around 67,000 new companies will be formed by the end of the year, including approximately 13,500 with non-UK national ownership.
These companies include both newly acquired properties and existing buy-to-let holdings transferred into limited company structures. The analysis includes any company where at least one shareholder is listed as a non-UK national. While these individuals are not British citizens, they may still reside in the UK.
“Despite the challenges facing landlords, non-UK nationals are increasingly embracing UK buy-to-let,” said Aneisha Beveridge, head of research at Hamptons. “The London market has long been an international one, well-known across East Asia, the US, and the EU. However, demand from non-UK nationals has steadily been shifting into lower value markets outside the capital, where the bulk of growth in both house prices and rents has been seen in recent years.”
Non-UK nationals remain most active in London, where they account for 27% of new company registrations in 2025. Kensington & Chelsea and Hammersmith & Fulham have the highest shares, with 54% and 51% of companies respectively owned by non-UK nationals.
However, the largest increases in foreign ownership have been outside the capital. The proportion of new landlords from abroad more than doubled in the East Midlands, West Midlands, and Scotland between 2016 and 2025. In Runnymede, 59% of new buy-to-let companies were owned by non-UK nationals, the highest share of any UK local authority.
In terms of nationality, Indian investors founded 684 new companies in the first half of 2025, more than any other group. Hillingdon saw the highest number of these incorporations. Nigerian nationals followed closely with 647, ranking second among foreign shareholders.
Ownership has increasingly shifted towards South Asia and Africa, diverging from trends seen in 2016. That year, 65% of non-UK national shareholders came from the EU. By 2025, that proportion had dropped to 49%. At the same time, Eastern European nationals have increased their presence. Polish investors founded 473 companies in H1 2025, and Romanian nationals set up 208.
“While overseas-based investors are part of the picture, the majority of purchases by non-UK nationals reflect domestic demand,” explained Beveridge. “Up until 2021, this demand was most likely to come from EU nationals based in the UK, but since then, it has shifted to reflect changes in broader migration patterns. Indian and Nigerian nationals are increasingly likely to buy UK buy-to-let property in a limited company structure.”
There has also been a decline in shareholders from English-speaking countries. In 2016, the top 10 included Irish, American, South African, and Australian nationals. By 2025, only Irish investors remained, ranking fourth.
In total, 61% of buy-to-let companies set up in 2025 had more than one shareholder. Of those owned by non-UK nationals, 84% were founded by individuals sharing the same nationality.
Rental market sees first annual decline since 2020
The average rent for a newly let property in Great Britain fell 0.2% year-on-year in July, marking the first annual drop since August 2020. However, the average monthly rent remains at £1,373, which is £350 or 34% higher than five years ago.
Rents are still increasing in seven out of 11 regions. The East Midlands recorded 3.4% growth, followed by the West Midlands at 2.7% and the South West at 2.6%.
Greater London experienced the sharpest fall, with a 3.0% year-on-year decline in July. This marked the seventh straight month of rental decreases and the steepest drop since May 2021. Wales saw rents fall for the third month running, while the North East (-0.3%) and Yorkshire & the Humber (-0.2%) also recorded year-on-year declines.
The North of England has led the national slowdown. A year ago, rents were rising rapidly, with the North East at 10.6%, Yorkshire & the Humber at 6.7%, and the North West at 8.6%.
Meanwhile, rents on renewed tenancies continued to climb, rising 4.5% year-on-year in July. This marks the fourth consecutive month of accelerating growth for renewals. Every region saw increases, with the North West leading at 7.2%.
The average monthly rent for a renewal now stands at £1,290, just £83 less than a new let. This is the smallest gap in four years, as landlords aim to align renewal rents with market prices while managing inflation.
“After five years of relentless rent rises, the market has paused for breath,” said Beveridge. “Rents on new lets have dipped for the first time since 2020, as falling mortgage rates and a cooling economy ease pressure on the market. But for sitting tenants, the story is different. Renewal rents continue to climb, with landlords keen to keep pace with inflation and close the gap with market rates. It’s a sign that while demand may be softening, the underlying cost pressures haven’t gone away.”
