Foreign ownership in the UK’s buy-to-let sector is on the rise, according to new data from a specialist lender.

Industry analysis reveals that, as of August, one in five newly established buy-to-let companies were founded by overseas investors—a notable increase from 13% in 2016.

The growth is particularly marked among South Asian and African nationals. Indian investors led the way, setting up 684 new companies, followed closely by Nigerian nationals with 647 incorporations.

This trend aligns with a surge in lending activity, as the lender’s latest figures show a similarly high volume of mortgage approvals for foreign nationals over the past year.

• Total Lending to Date: £ £16,554,841

• Monthly Lending Average: £1,378,737

• Average Loan Size: £139,032

The specialist lender has cautioned that overseas appetite for UK buy-to-let investments could take a hit following the upcoming Autumn Statement. Industry speculation suggests the government may unveil new tax measures targeting the property sector—including a possible move to apply National Insurance contributions to rental income, a charge landlords are currently not required to pay.

A spokesperson for the lender, comments: “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.

“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.

“Over the past year, the company has lent between £1 million and £1.5 million a month to foreign investors, enabling them to grow their portfolios here. London has traditionally been seen as the best city for foreign investment, yet in recent years we have seen dramatic growth around the rest of the country. For example, in the East and West Midlands and in Scotland, foreign ownership has more than doubled since 2016.

“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.”