The proportion of foreign-owned buy to let businesses in the UK has grown significantly, with research revealing one in five new companies was founded by overseas investors this year.
That compares with 13% in 2016 as Indian investors lead the way, setting up 684 new firms, followed closely by Nigerians who launched 647.
Now specialist lender Together has disclosed its lending data showing a surge in finance for non-UK property investors.
1 in 5 are foreign owned
Together’s chief commercial officer, Ryan Etchells, said: “Non-UK nationals now account for one in five newly established rental property companies in the UK, a notable increase from 13% in 2016.
“This really highlights growing international confidence in the UK’s buy to let market, despite successive changes in tax and regulation, and economic turbulence.”
He added: “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.”
Government could undermine investment
Between September 2024 and August 2025, the lender advanced more than £16.5 million in loans to foreign landlords, equating to between £1 million and £1.5 million a month.
The average loan size stood at £139,032.
Despite the influx of overseas landlords, questions remain over whether potential government announcements will affect overseas appetite for UK rented housing.
The Autumn Statement is expected to include tax reforms, with speculation around the potential introduction of national insurance charges on rental income.
Regional investment surges
Mr Etchells went on to say that while London has traditionally been seen as the best city for foreign investment, recent years has seen dramatic growth around the rest of the country.
Foreign landlords are heading to East and West Midlands and Scotland, where overseas ownership has more than doubled since 2016.
He adds: “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.”