There has been no shortage of gloomy commentary about buy-to-let of late, so you might wonder why anyone living overseas would want to invest here. But the international investment picture is rather more encouraging.
The UK ranks as the world’s most transparent property market in JLL’s latest global index. It also remains alongside Germany as one of Europe’s two most preferred destinations for property investment, according to a 2026 international survey of institutional investors. That is a broader market perspective rather than a measure of expat demand, but it provides a useful counterpoint to the domestic pessimism.
For expat landlords, that continuing appeal is only part of the picture. Whether they are keeping a foothold in the UK or building a rental portfolio from overseas, the investment needs to support their longer-term plans. Confidence in the market is a starting point – making the numbers work on a particular property is another exercise altogether.
With costs and regulatory requirements putting pressure on returns, some landlords, both UK-based and expat, are looking beyond conventional single household lets. HMOs can offer higher rental yields, although more rent does not automatically mean more profit. The additional costs and responsibilities need to be factored into the calculation too.
For expat buy-to-let borrowers considering an HMO, there are two layers of complexity: their circumstances overseas and the property they want to finance. Technology has made it easier to stay connected to the UK, but finding a broker who understands both overseas borrowers and HMO lending, and knows which lenders can accommodate the combination, takes rather more judgement.
Arranging an expat buy-to-let mortgage involves practical considerations around documentation and identity checks. Take a borrower whose employer provides their accommodation overseas. They may have neither a utility bill in their own name nor the sort of residential address a UK application expects.
Establishing early on which documents the client can provide helps brokers avoid unnecessary delays. Understanding the arrangement may allow a lender to establish their address through an employer’s confirmation or tenancy documentation instead.
Even a British passport cannot guarantee that overseas bank statements or employment documents arrive in English. Translation can hold up a case if the need is only spotted after the application is under way. Familiarity with expat lending helps brokers anticipate these practicalities, rather than discover them when everyone is hoping to complete next week.
Technology is helping with the process too. Depending on the lender’s requirements, brokers may be able to certify documents after seeing the originals during a video call. That can be particularly useful where the usual UK electronic identity checks cannot establish an overseas borrower’s details.
Separate from the conveyancing, lenders also need an arrangement for serving legal notices if the mortgage falls into arrears or default. A suitable UK resident may be able to receive those notices on the borrower’s behalf, without a solicitor being appointed specifically for that role. Knowing the current requirements can prevent an unnecessary complication.
An HMO adds another dimension. The rental assessment may differ between smaller and larger properties, and between lenders. Some assess a smaller HMO on the rent it could achieve as a single household let, while using the combined room rents for a larger property.
The income an expat landlord expects to collect is therefore not necessarily the figure used to calculate the borrowing available.
Nor should we assume that every expat HMO investor already has a substantial portfolio. A first-time expat landlord buying shared accommodation introduces a different combination from an experienced HMO owner refinancing an existing investment. Add company ownership or a property intended partly to accommodate a family member, and the picture becomes more individual still.
A broker who understands the borrower’s circumstances can identify a lender able to consider their expat status and HMO requirements together, opening up options the borrower might otherwise assume are out of reach.
But the confidence to invest also depends on being able to plan ahead. Let’s hope the Chancellor uses the forthcoming Budget to give the Private Rented Sector time to adapt to the changes already under way, rather than adding further burdens.
Landlords can plan for the odd void; planning for the next policy surprise is rather more difficult.
Tony Hall is head of business development at Saffron for Intermediaries
