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According to Handelsbanken’s 2025 Property Investor Report, 54% of UK property investors are looking to increase the size of their portfolios in 2025. This is indicative of the sense of optimism that is present amongst property investors in the UK buy-to-let market at the moment. Accordingly, the same investor report found that 80% of investors anticipated their portfolios to grow in value this year. The trend of increasing activity from UK property investors is also corroborated by a surge in buy-to-let mortgage lending, with an increase of 25% in the last six months alone.
The regional variation in markets is also worth noting, with areas like the North of England consistently seeing above average house price growth when compared with national figures. It’s vitally important for investors to be aware of the best performing areas and how well they align with their investment goals. This is again mirrored in the report, as 73% of respondents said they would diversify their portfolios geographically and 75% would diversify their sector.
Investor Trends.
Responding to market trends is a key part of UK expat and foreign national investor’s success. This is especially true in tricky market conditions, like those that are present at the moment. Reacting quickly and effectively is the best way to ensure continued profits during these times. This includes varying the type of property and the type of tenant. It will also include making sure that existing investment properties are up to date with current market trends and as desirable as possible for potential tenants. One of the main recent developments in the rental market is that tenants are increasingly willing to pay more for sustainable properties, both for their ethical value and their practical value (for example, sustainable properties can translate to lower utility bills etc). Because of the increased interest from tenants, UK expat and foreign national investors are increasingly looking toward eco-friendly homes.
Sustainability was also a main point in the Handelsbanken report, which recognised that sustainable investments are representing a sizeable strategic shift. Increasingly, consumers are looking for sustainable properties in the rental market, with 77% of tenants showing interest in sustainability. Because of this trend, 92% of investors feel like tenants will pay a premium for greener properties. Legislative changes will compound this shift, with rental properties in the UK needing a minimum EPC rating of a C by 2030. These changes in legislation mean that it will be vital for UK expat and foreign national investors to get ahead of this curve.
Another major shift for investors is the number investing in property through a limited company, leading to a rise in the number of lenders offering mortgage products for this purpose. ‘It’s no surprise that lenders are rising to the challenge of limited company mortgages’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘A recent survey revealed that 60% of landlords are planning to use a limited company structure to invest in properties in the next year. This is a continuation of the trend from the last five years, with limited company ownership amongst property investors doubling in the last five years – from 36% in Q1 2020 to 66% in Q1 2025.’
‘It will be particularly important for those looking to build larger portfolios to invest in this way in order to mitigate the impact of legislative and tax changes and to maximise profitability. This is because the greater the number of properties, the greater the tax burden for UK expat and foreign national investors so a tax efficient investment vehicle like a limited company is far more efficient.’
Specialist Mortgage Products Expanding to Meet Demand.
Specialist lenders are expanding their range of products in order to satisfy the growing demand from UK expat and foreign national investors looking to start investing or expand their portfolios. There are a range of available mortgage products available for all sorts of different investment purposes and an increased offering for limited company mortgages. ‘Expert brokers like Liquid Expat Mortgages have been working with lenders to expand their product ranges for many years, so we’re glad to see the products that UK expat and foreign national investors need hitting the shelves’ says Stuart Marshall. ‘Limited company mortgages in particular are going nowhere, so lenders are likely to continue to increase their offering in this section of the market.’
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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