The UK’s rental property landscape is undergoing a notable shift — and not just in terms of prices. This year, foreign ownership of UK buy-to-let companies has surged to record levels, even as average rents fall for the first time since 2020.
According to fresh analysis of Companies House data by estate agency Hamptons, one in five buy-to-let companies incorporated in 2025 has at least one non-UK national shareholder. That’s a sharp rise from just 13% in 2016, and the proportion has increased in nine of the past ten years.
Foreign Investment: Who’s Leading the Charge?
Indian nationals have emerged as the single largest group of overseas investors this year, establishing 684 new buy-to-let companies in the first half of 2025 alone. Nigerians aren’t far behind with 647 companies, followed by Polish investors (473) and Irish buyers in fourth place.
The makeup of foreign ownership has changed significantly over the past decade. Back in 2016, 65% of foreign shareholders were EU nationals. In 2025, that figure has fallen to 49%, with investors from South Asia and Africa rapidly gaining market share.
Where the Money’s Flowing
London remains the centre of gravity for foreign-owned buy-to-let companies. 27% of all new companies in 2025 have been registered in the capital, with certain boroughs seeing especially high concentrations. In Kensington & Chelsea and Hammersmith & Fulham, over half of new buy-to-let companies have foreign shareholders.
Yet the fastest growth is happening outside London. The East Midlands, West Midlands, and Scotland are seeing a sharp uptick in international investment. In fact, Runnymede in Surrey now tops the charts nationwide, with 59% of new buy-to-let companies owned by non-UK nationals.
Rents Take an Unexpected Turn
While overseas investment accelerates, the rental market is showing early signs of cooling. The average rent for a newly let property in Great Britain fell 0.2% year-on-year in July to £1,373 per month — the first annual decline since August 2020.
This slight dip still leaves rents £350 higher than pre-pandemic levels, highlighting how far prices have climbed in recent years.
The drop has not been uniform across the country:
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Greater London saw the steepest fall, with rents down 3.0%, marking the capital’s seventh consecutive monthly decline.
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Wales, the North East, and Yorkshire and the Humber also recorded annual drops.
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By contrast, the East Midlands, West Midlands, and South West posted the strongest growth in new let rents.
Renewals Tell a Different Story
In contrast to the dip in new lets, renewal rents — where existing tenants sign a new contract with the same landlord — are still climbing. They rose 4.5% year-on-year, with the North West leading the way at 7.2%.
The gap between new let rents and renewal rents has narrowed to just £83 per month, the smallest difference in four years. This suggests landlords are increasingly bringing long-standing tenants’ rents in line with broader market trends — a move likely driven by inflation and rising ownership costs.
Why This Matters
Hamptons’ head of research, Aneisha Beveridge, sums it up:
“After five years of relentless rent rises, the market has paused for breath. While demand may be softening, the underlying cost pressures haven’t gone away.”
For tenants, this could be a small moment of relief after years of steady increases. For landlords — both UK-based and overseas — the challenge will be navigating a more competitive, less overheated rental market while managing higher costs.
The rise of foreign ownership is also reshaping regional dynamics. London’s historic dominance as the magnet for international investors is still strong, but the fastest growth is happening in areas once overlooked by overseas buyers. That could have long-term implications for housing availability and pricing far beyond the capital.