Fifth of buy-to-let companies set up by landlords who aren't British citizens The investors may or may not reside in the UK, but don't hold citizenship By HELEN CRANE, DEPUTY EDITOR, THIS IS MONEY Updated: 00:01 BST, 11 August 2025 One in five buy-to-let property companies set up in the last year is owned - at least in part - by an investor who is not a British citizen, research has found. The estate agent Hamptons analysed Companies House data and found that 20 per cent of all newly-established buy-to-let limited companies listed one or more shareholders as an overseas investor. These shareholders may or may not reside in the UK. According to Hamptons, many are likely to be individuals with citizenship in countries such as India and Nigeria, but who are living in the UK. Aneisha Beveridge, head of research at Hamptons, said: '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. 'Indian and Nigerian nationals are increasingly likely to buy UK buy-to-let property in a limited company structure.' The share of buy-to-let limited companies with at least one non-UK shareholder While the companies are new, they may be transferring over properties they have owned in their personal names for some time. The share of buy-to-let companies with overseas shareholders has increased in nine of the last 10 years, Hamptons said. In 2016, the share was 13 per cent. Not all landlords own properties via a limited company, with many owning them in their personal name instead. Hamptons said landlords hailing from India made up the largest group of new registrations in the last year, as they have in every year since 2023. They were followed by those from Nigeria, Poland, Ireland and Italy. RELATED ARTICLES I'm a property expert... Zoopla's Richard Donnell says a... How being an accidental landlord could land you with a... Share this article Hamptons added that, since Brexit, the share of buy-to-let company shareholders from EU countries had fallen, in line with general migration trends. In 2016, some 65 per cent of non-UK shareholders came from the EU, but this figure has fallen to 49 per cent in 2025. Eastern European nationalities have bucked the trend, though. Both Polish and Romanian nationals now make up a larger share of new buy-to-let shareholders than they did in 2016, setting up 473 and 208 companies in the first half of 2025 respectively. 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.' Changes: This shows the nationalities that were most likely to be shareholders in UK buy-t-let companies over time, with those from India currently on top Non-UK nationals make up the largest proportion of shareholders in buy-to-let companies registered in London. This year, 27 per cent of newly-registered buy-to-let companies in the capital were owned by non-UK nationals, rising to 54 per cent in the borough of Kensington & Chelsea and 51 per cent in Hammersmith & Fulham. Regions outside the capital have generally seen the largest growth in foreign ownership, however. Between 2016 and 2025, the share of new non-UK national landlords more than doubled in the East Midlands, West Midlands and Scotland. Runnymede in Surrey saw the highest share of new companies set up by non-UK nationals this year of any other local authority in the country, at 59 per cent. Why do landlords use limited companies? Using a limited company as an ownership structure for buy-to-let properties has become more popular in recent years because it offers potential tax benefits. According to a previous Hamptons report, the number of buy-to-let companies went up by 332 per cent between February 2016 and February 2025, going from 92,975 to 401,744. The landlord tax trap stopping home owners renting out their spare rooms The main benefit of 'incorporating' your buy-to-let properties is that corporation tax - payable in a company structure - is lower than income tax, which is payable for landlords who own properties in their own name. This allows landlords to build up profit within the company, which they can use it to re-invest towards another property sooner than they might otherwise have done if owning in their own name. Owning in a limited company also allows property investors to fully offset all of their mortgage interest against their rental income, before paying tax. Landlords who own property in their own name only receive tax relief based on 20 per cent of their mortgage interest payments. It means that whilst individual landlords are effectively taxed on turnover, company landlords are taxed purely on profit. Hamptons estimates that 70 to 75 per cent of new buy-to-let purchases now go into a company structure. How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today’s best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you’re ready to find your next mortgage, why not use L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you. Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you. Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage Share or comment on this article: Fifth of buy-to-let companies set up by landlords who aren't British citizens Add comment