One in five new buy-to-let companies owned by a foreigner
The share of buy-to-let companies set up by at least one non-British shareholder has increased from 13pc in 2016 to 20pc today, according to data by estate agency Hamptons.
In London, the share of international landlords setting up new businesses is now more than one in four (27pc), up from 20pc in 2016.
Indian investors made up the largest group of non-British shareholders setting up buy-to-let limited companies in the first half of 2025, followed by Nigerians, Polish and Irish.
It marks a shift from the years from 2016 to 2019, when Irish were the largest group, followed by Chinese, Indians and Polish. These owners may reside in Britain, despite not being British citizens.
The share of foreign shareholders coming from the EU has fallen from nearly two-thirds (65pc) in 2016 to less than half (49pc) this year.
The research found that, at current rates, around 67,000 new companies will be set up by the end of 2025, with around 13,500 owned, at least in part, by non-British nationals.
There has also been a fall in new shareholders from English-speaking countries, according to the data. In 2016, Irish, Americans, South Africans and Australians all featured in the top 10 list of foreign nationals with the highest number of buy-to-let businesses. By 2025, only Irish nationals remained in the top 10.
Over half of the new companies set up in Kensington & Chelsea (54pc) and Hammersmith & Fulham (51pc) in the first half of 2025 were owned by non-British nationals.
However, regions outside the capital have generally seen the largest growth in foreign ownership. Between 2016 and 2025, the share of new foreign national landlords more than doubled in the East Midlands, West Midlands and Scotland. Runnymede was the local authority with the highest share of new companies set up by non-British nationals this year, at 59pc.
Hamptons estimates that 75pc of new buy-to-let purchases are now held in a company structure, which is often more tax efficient than individual ownership.
The shift comes amid a buy-to-let crackdown by successive governments, with punitive taxes and tightening red tape leading to an exodus of landlords from the rental market as profits have dwindled. The share of properties sold to investors has fallen from 13.4pc in 2016 to 9.6pc today, according to separate Hamptons data.
Critics have warned that Labour's upcoming Renters' Rights Bill will squeeze landlords further.
The legislation – dubbed the biggest overhaul of rental law in 30 years – will end fixed-term tenancies, stop landlords from taking action against non-paying tenants for up to three months, and ban bidding wars by requiring landlords and letting agents to publish an 'asking rent' for the property.
The bill will also eliminate Section 21, otherwise known as 'no-fault evictions', for all new and existing tenancies from next summer. Instead, landlords will need to rely on Section 8 to evict a tenant, a piece of legislation undermined by long court delays. It is due to become law in the autumn.
One in three landlords is looking to sell off some or all of their rental properties, according to the latest English Private Landlord Survey, with just under two thirds blaming recent changes in legislation.
Aneisha Beveridge, of Hamptons, said: 'Despite the challenges facing landlords, non-UK nationals are increasingly embracing UK buy-to-let.
'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.
'While overseas-based investors are part of the picture, the majority of purchases by non-UK nationals reflect domestic demand.
'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.'
William Reeve, of letting agent software firm Goodlord, said: 'This data suggests the international landlords are viewing the UK rental sector more positively than UK nationals do – time will tell whether the rental sector is dilapidating or is a fixer-upper.
'It's a reminder of how the tax changes brought in over the past 10 years have made it very hard to earn a return as a personal UK resident taxpayer, who are now at a disadvantage relative to limited companies. These companies can expense full mortgage costs, unlike individuals, and pay tax at corporation rates rather than higher or additional [income] tax rates.'
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