One in five new buy-to-let companies formed in the UK this year has at least one non-UK national shareholder—up from just 13% in 2016—according to Hamptons. Despite a slight dip in average rents for new lets, incorporation rates are on track to hit a record 67,000 in 2025, reshaping the landlord landscape.
Overseas investors increase foothold in UK rental market
Hamptons’ analysis of Companies House records shows that non-UK nationals have become a growing force in the limited company buy-to-let market. This year alone, around 13,500 newly incorporated landlord businesses have overseas shareholders, reflecting a trend that has risen in nine of the past ten years.
Indian nationals have led the pack since 2023, registering 684 companies in the first half of 2025—most concentrated in Hillingdon, west London. Nigerian investors are the second largest group, establishing 647 companies over the same period. Eastern European investors, particularly Polish and Romanian nationals, have also expanded their presence since 2016.
London remains the most internationally owned buy-to-let region, with 27% of new companies having non-UK shareholders. In boroughs such as Kensington & Chelsea and Hammersmith & Fulham, that figure exceeds half. Outside the capital, Runnymede in Surrey leads, with 59% of new landlord companies set up by foreign nationals this year.
Rent growth slows for new lets but renewals keep climbing
After five years of uninterrupted rises, the average rent on a newly let property fell 0.2% year-on-year in July to £1,373 per month—the first decline since August 2020. London saw the sharpest drop, with a 3% fall, marking seven straight months of decline. Wales, the North East, and Yorkshire & the Humber also recorded small annual falls.
However, renewed tenancy rents tell a different story. They rose 4.5% year-on-year in July, with the North West leading at 7.2%. The average renewal rent now sits at £1,290—just £83 below the figure for new lets—narrowing the gap to its smallest in four years.
Aneisha Beveridge, Head of Research at Hamptons, said: “Rents on new lets have dipped for the first time since 2020, as falling mortgage rates and a cooling economy ease pressure. But for sitting tenants, renewal rents continue to climb, reflecting landlords’ efforts to keep pace with inflation and bring rents closer to market rates.”
What this means for UK landlords
The growth in incorporations, particularly among overseas investors, reflects both tax efficiency and long-term confidence in the UK rental sector—despite regulatory pressures. Limited company buy-to-let structures remain attractive for higher-rate taxpayers, while interest from South Asia, Africa, and Eastern Europe suggests landlords are diversifying into regions with stronger yields outside prime London.
For domestic landlords, the slowdown in rent growth for new lets may ease competition for tenants, but renewal increases highlight ongoing cost pressures. With mortgage rates softening, some may see a window to refinance, expand portfolios, or hold onto existing assets while foreign investment continues to buoy demand.
Editor’s view
International capital is clearly reshaping the UK’s buy-to-let market. While this can support housing supply in some regions, it also adds competitive pressure for British landlords already facing tax and compliance costs. The real question is whether slowing rents on new lets signal a longer cooling trend—or just a brief pause before the next upswing. For now, the market remains a game of strategic positioning, both at home and abroad.
