Foreign ownership of buy-to-let companies in the UK has seen steady growth, with non-UK nationals now owning one in five newly incorporated buy-to-let businesses. This marks a sharp increase from 13% in 2016 and reflects wider trends in post-Brexit migration.
In 2025, the UK is on track to see a record 67,000 new buy-to-let companies formed, with around 13,500 of these partially owned by international investors. Indian nationals are leading the charge, contributing to the establishment of 684 new companies in the first half of the year. Nigerian, Polish, and Irish nationals are also contributing heavily to this trend.
The shift in investor demographics is particularly evident in lower-value markets outside London, where house prices and rental growth have remained strong. Although London continues to be a focal point for foreign ownership, markets like the East Midlands, West Midlands, and Scotland have seen significant increases in international buy-to-let incorporations.
Despite the steady rise in buy-to-let incorporations, rental growth in Great Britain showed a small dip in July, marking the first decline in five years. While rents fell 0.2% year-on-year, the average rent still sits at £1,373 per month, reflecting a 34% increase from five years ago. Although rental growth remains strong in regions like the East Midlands and West Midlands, Greater London has seen a sharp decline in rents.
Renewal rents, however, have continued to rise, with landlords aligning these rates more closely with market levels to mitigate future regulatory risks. While demand may be softening, the pressure from rising costs persists.
