The number of foreign-owned buy-to-let companies in the UK is growing at pace. New industry research shows that a fifth of new buy-to-let companies have been set up by foreigners in 2025 (up to August), up from 13% in 2016*. The shift towards South Asian and African investors is also considerable, with Indians making up the most prominent nationality, founding 684 new companies, and Nigerians the second most prominent with 647 new corporations.
These stats are corroborated by Together’s latest update on lending figures. It shows an equally high volume of loans granted to foreign nationals over the last year, and a consistent appetite for enterprise against a tough economic backdrop.
Together internal data on lending to foreign property investors September 2024-August 2025
- Total lent: £16,554,841
- Average sum lent per month: £1,378,737
- Average value of loan: £139,032
There are two conclusions to be drawn from this trend. Firstly, it really highlights a growing international confidence in the UK’s buy-to-let market, which retains considerable advantages despite successive changes in tax and regulation, and economic turbulence. Secondly, it poses questions of the domestic buy-to-let market: whether it’s falling behind, what could explain the changing face of the market.
Foreign investors provide a much-needed injection of capital at a time when UK domestic investment is constrained, helping to ease pressure on the private rental market and support housing supply. Considering that the UK is still falling short of its annual homebuilding targets, this funding can play a key role in addressing rental demand.
Over the past year, Together has lent between £1 million and £1.5 million a month to foreign investors, enabling them to grow their portfolios here. London - ever an international hub - has traditionally been seen as the best city for foreign investment, yet in recent years we have seen dramatic growth around the rest of the country as international investors take advantage of the high growth potential for rental yields in the regions. For example, in the East and West Midlands and in Scotland, foreign ownership has more than doubled since 2016.
This diversification benefits communities nationwide, spreading economic activity beyond the capital, supporting local jobs and providing homes. Ultimately, foreign investment is not just about property ownership, it shows there is confidence in the UK’s legal and financial systems, and can be a real benefit to our struggling rental market.
However, the attractions of the UK’s buy-to-let market are not immune to losing their sheen should the wrong decisions be taken on policy. International interest in the buy-to-let sector may be seriously impacted by the upcoming Autumn Statement, which is rumoured to herald the introduction of a number of taxes affecting the property sector. Among these is the potential introduction of national insurance for rental income, for which landlords are currently exempt.
Such taxes not only risk putting more pressure on domestic buy-to-let investors, but any disincentives to international investment could also be counterproductive for a government looking to support renters and reduce inflationary pressures. International capital is both precious and easily spooked, and the last thing the country needs is for investors to consider their options in other markets when good momentum is building in the UK. Though there is a serious fiscal black-hole to be plugged in November, the old mantra that overtaxation impedes growth needs to be heeded. With housebuilding a priority, the government should at this stage understand that the property market needs growth above all else.
