The demographic of investor landlords is changing. In an encouraging development for the sector, a new cohort of investors are entering the market. More than 3,000 Buy to Let landlords in the UK are now under the age of 21. Between them they earn more than £66m in rental income a year.
As older landlords are leaving the market for a variety of reasons, these ‘Gen Z landlords’ are the latest entrants to the buy-to-let property sector, joining over 2.6m other UK buy to let landlords. Property continuing as one of the four pillars of investment – alongside cash, stocks and shares and businesses – continues to make it an attractive option for these new, younger, UK private investors.
The Statistics across the Wider Sector
There are now 696,000 landlords over the age of 65, up 20% from 582,000 in 2018. Despite the overall number of landlords falling by 1.7% to 2.7m, those now earns over 27% of all income earned from UK rental properties – equivalent to £11.5bn last year.
The next younger age group: 51-60 age, remains the largest segment of landlords, with 723,000 individuals. Combined with the older age group of over-65s, this demographic consists of 1.67 million landlords in the UK, representing the majority – 63% of all landlords.
The number of younger landlords as a proportion of the whole is counterintuitive in a number of ways, particularly as the private rented sector and property investing as a concept has been undermined by the language, sentiment and actions of successive central governments.
The relatively large number of under-21 landlords is encouraging. This potentially shows that the newest generation not only sees the value of being self-sufficient and investing in property, as well as starting to invest early.
The emergence of younger landlords in the UK, particularly those under 21, highlights a promising shift in the property investment landscape. As this new generation embraces the buy-to-let market, it’s clear that property remains a cornerstone of long-term financial planning. Whether you’re a seasoned landlord or a new entrant, understanding these trends can help you better position your investments for future success.
At The Property Lifeboat, we understand the evolving needs of all our clients, from the experienced to the new landlords. If you’re a property investor in Kent, now is the time to ensure your portfolio is optimised to take advantage of these demographic shifts. Contact us today for personalised advice and expert guidance on how to make the most of your property investments in this changing market.
At The Property Lifeboat, we will always help and advise landlords and assist where we can.
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