Surge in BTL incorporations fuelled by foreign landlords

One in five of the new buy to let incorporated companies established this year are owned by non-UK nationals, research reveals.

According to Hamptons, this is a big rise from 13% in 2016, with the proportion of foreign shareholders increasing in nine of the past 10 years.

Indian investors lead the charge, followed closely by Nigerians, Poles and Irish nationals.

The data, drawn from Companies House, reveals that 684 new BTL companies were founded by Indian nationals, with Hillingdon emerging as a hotspot for their ventures.

Nigerians, meanwhile, established 647 companies, reflecting a notable rise in African investment since 2020.

Embracing UK BTL

The firm’s head of research, Aneisha Beveridge, 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.”

She 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.”

More BTL firms since Brexit

Hamptons says that the landscape of international ownership has shifted since the UK’s departure from the EU.

In 2016, 65% of non-UK shareholders came from EU countries, but this has dropped to 49% in 2025.

Eastern European investors, particularly from Poland and Romania, have defied this trend, with 473 and 208 new companies respectively.

Conversely, shareholders from English-speaking nations like the US, South Africa and Australia have seen their presence dwindle, with only Irish nationals remaining in the top rankings.

BTL sector seeing growth

The UK’s buy to let sector is experiencing robust growth, with new company formations projected to reach 67,000 by the end of 2025, an 8% increase over last year’s record.

Of these, around 13,500 will involve non-UK nationals.

Most companies (61%) have multiple shareholders, typically of the same nationality, with 84% of non-UK-owned firms reflecting this pattern.

Capital is landlord epicentre

London remains the epicentre for international landlords, with 27% of new buy to let companies in the capital owned by non-UK nationals.

Boroughs like Kensington and Chelsea, and Hammersmith and Fulham lead, with 54% and 51% of new companies respectively under foreign ownership.

However, regions outside London are catching up with the East Midlands, West Midlands and Scotland seeing the share of non-UK landlords more than double since 2016.

Runnymede stands out, with 59% of new companies linked to international investors.