International landlords increased their share of new buy-to-let (BTL) company setups in the UK, with 20% of new BTL companies so far this year having at least one non-UK shareholder, research from Hamptons found.
This was up from 13% in 2016.
The number of BTL companies being set up in 2025 was running 8% ahead of last year’s record, with around 67,000 new companies expected by the end of the year.
About 13,500 of those would have at least one non-UK national as a shareholder.
Hamptons found that 61% of BTL companies set up this year had more than one shareholder, and most shareholders tended to have the same nationality.
Of the companies set up by non-UK nationals, 84% were owned by shareholders from the same country.
Indians made up the largest group of non-UK shareholders in new BTL companies in both 2024 and 2025.
Nigerians were the second-largest group, with 647 new BTL companies set up by Nigerian nationals in the first half of 2025.
Polish and Irish nationals were also high on the list, along with Italians.
In Hillingdon, more new companies were set up by Indian nationals than in any other local authority area.
Ownership by non-UK nationals has generally shifted away from EU countries since 2016, dropping from 65% to 49% of all non-UK shareholders.
There has also been a fall in shareholders from English-speaking countries, with only Irish nationals remaining in the top five by 2025.
Eastern European nationalities like Polish and Romanian saw their share rise, setting up 473 and 208 new companies respectively in the first half of 2025.
London remained the top region for non-UK ownership, with 27% of new BTL companies in the capital owned by non-UK nationals this year.
Over half of new companies in Kensington & Chelsea (54%) and Hammersmith & Fulham (51%) had non-UK shareholders.
The fastest growth was seen outside London, with the share more than doubling in the East Midlands, West Midlands, and Scotland.
Runnymede saw the highest share of new companies set up by non-UK nationals, at 59%.
Average rent on a new let fell by 0.2% year-on-year in July, the first annual drop since August 2020.
The average rent was £1,373 per month, which was still £350 or 34% higher than in August 2020.
Rents were still rising in seven out of 11 regions, with the East Midlands, West Midlands and South West seeing the highest increases.
Greater London had the steepest fall, with rents down 3% year-on-year in July, marking seven months of decline.
Rents for renewed tenancies were up 4.5% year-on-year in July, with the North West showing the strongest growth at 7.2%.
The average rent on a renewal was £1,290 per month, £83 less than a new let, the smallest gap in four years.
Aneisha Beveridge, head of research at 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.”
Beveridge added: “While overseas-based investors are part of the picture, the majority of purchases by non-UK nationals reflect domestic demand.
“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.”
She said: “After five years of relentless rent rises, the market has paused for breath. 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.”
