UK Buy-to-Let Market Growth Driven by Overseas Investors

The UK buy-to-let market is increasingly attracting international investors. Recent data from Hamptons shows that, in 2025, one in five (20%) newly-formed buy-to-let companies feature at least one non-UK national shareholder, a notable rise from 13% in 2016. This upward trend has persisted through most of the last decade.

Key Drivers of Growth

• Stable Returns: UK rental market trends continue to show steady yields.
• Strong Tenant Demand: High demand for rental properties ensures minimal vacancy.
• Market Resilience: The UK market has weathered global uncertainty, maintaining investor confidence.
• Shifting Focus: While London remains a prime target, many investors are now exploring more affordable and potentially higher-yield regions.

Changing Profile of Overseas Buy-To-Let Investors

• Indian Nationals: Leading group of non-UK shareholders since 2023.
• Nigerian Investors: Rapid growth, with 647 new buy-to-let companies formed in the first half of 2025
• Eastern Europeans: Investors from Poland and Romania continue to increase their presence, even as overall EU investment declines.

Geographical Shifts

• London: Still the hub, 27% of new buy-to-let companies in 2025 are foreign-owned.
• Regions on the Rise: East Midlands, West Midlands, and Scotland have all seen the share of overseas landlords more than double since 2016.

Rental Market Performance

• National Trends: After five years of consistent rental growth, new let rents dropped 0.2% year-on-year in July, the first decline since August 2020.
• Average Rents: Despite the recent dip, average rents remain £350 higher than in 2020.

Regional Highlights

• Growth Leaders:

• London: Experiencing the sharpest decline at -3.0%, continuing a seven-month downward trend.
• Other Regions: Wales, the North East, and Yorkshire and Humber, also reported annual declines.

Renewal Rents

• Climbing Rates: Renewal rents are up 4.5% year-on-year across the UK.
• North West: Leading with 7.2% growth, as landlords align renewal rates with market levels.

Why International Investors Are Diversifying Beyond London

• Lower Entry Costs: Regional markets offer more accessible price points.
• Stronger Yields: Higher rental returns driven by local demand.
• Growth Potential: Regeneration projects in regional cities present long-term upside.

Magnate Assets Perspective

The UK buy-to-let market remains resilient, attracting overseas capital due to:

• Expanding opportunities beyond London
• Consistent rental returns in key regional markets
• A robust legal framework for property ownership

Looking to Invest from Overseas?

Magnate Assets offers expertise to help overseas buy-to-let investors identify the right property, in the right region, at the right moment—maximising your capital’s potential in the UK market.