I figured he was acclimatizing to his new country, and writing stories in English was a good way of learning the language. He certainly seemed to pick up English quicker than his mother; there's one scene where he appears to be translating for her, and she still retains her Spanish accent as an old woman while he lost his growing up.
Another possibility: writing the story and hiding it in the tree was Juan's way of "trapping" Hollowface. Since they were in a new country, and it was supposed to be a fresh start and a refuge from their past, maybe writing the story in English was a symbolic thing. "You terrorized us back in Spain, but we're in England now, motherf---er!"
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