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Private landlords are setting up tens of thousands of property companies this year, with one in five incorporated by investors from overseas.
The number of new companies is already running at 8 per cent ahead of last year's record total.
Analysts reckon if current rates are maintained, 67,000 new property companies will have been set up by the end of the year, and 13,500 of them will have at least one non-UK national.
Indian investors are leading the rush, setting up 684 new companies in the first six months of 2025, followed by Nigerians with 647 new companies. Other nationalities heavily involved in property investment are the Irish and Polish.
Research by estate agency Hamptons shows how Brexit has influenced property investment in the UK.
Before Brexit, two out of three UK investors were from the European Union. Now, that number has slipped to just under half.
London is the UK hub for international buy-to-let investment, with 27 per cent of property companies owned by non-UK nationals. In some boroughs, such as Kensington and Chelsea or Hammersmith and Fulham, the level rises to 50 per cent.
However, the most growth in incorporating new property companies is happening in the Midlands and Yorkshire, where non-UK shareholders and directors have more than doubled since Brexit.
| Region | 2016 | 2025 |
|---|---|---|
| London | 20% | 27% |
| South East | 10% | 18% |
| South West | 9% | 16% |
| East | 10% | 18% |
| East Midlands | 6% | 16% |
| West Midlands | 8% | 18% |
| North East | 10% | 15% |
| North West | 10% | 17% |
| Yorkshire & Humber | 8% | 15% |
| Wales | 9% | 12% |
| UK average | 13% | 20 |
Source: Companies House and Hamptons
Hamptons lead analyst David Fell, who headed the research, said: "While overseas-based investors are part of the picture, the majority of purchases by non-UK nationals reflect domestic demand.
"Until 2021, this demand was most likely to come from EU nationals based in the UK. Since then, it has shifted to reflect changes in broader migration patterns, with Indian and Nigerian nationals increasingly likely to buy UK buy-to-let property through a limited company."
Official data revealed 345,426 buy-to-let companies were trading in 2024 - a huge increase from the 5,000 or so registered with Companies House in 2007.
Buying a home or investment property through a limited company can offer investors tax advantages and limit personal liability. Landlords often use this strategy. However, it involves more administration and regulation, higher mortgage rates, and fewer lender options.
The main difference between trading as an individual landlord or a company is the tax treatment of mortgage interest. As an individual, a buy-to-let landlord can offset a smaller amount of the expense than a corporate landlord.
Separate Hamptons research concluded that setting up a buy-to-let company is not always financially beneficial for property investors.
Investors with one or two companies lose out, while higher-rate taxpayers and investors with larger portfolios can gain. That's because the costs of incorporating and maintaining a company outweigh the financial benefits a company can offer.