Younger landlords set to reshape PRS

Britain’s landlord base is set for a generational overhaul, with Millennials forecast to account for 44% and Gen Z 18% within a decade, research reveals.

However, it won’t be a clean handover since Boomers and Gen X (those born between 1946 and 1980), who currently make up 54% of landlords, are expected to fall to 37%.

Research from Rely, part of the OSB Group, surveyed 1,509 current and future landlords about how the private rented sector could change over the next 10 years.

It also predicts ethnic minority representation among landlords will more than double from 11% to 23%, while the proportion of female landlords will rise from 36% to 42%.

Younger landlords move in

The firm’s chief commercial officer, Jon Hall, said: “Our new research makes one thing very clear: the private rented sector is not disappearing, it’s transforming.

“A younger, more diverse and more tenant-focused generation is taking over, changing what it means to be a landlord in Britain.”

He added: “This generation will think differently, look different and approach the role with a genuine commitment to professionalism and positive impact.

“They are motivated to deliver genuinely good homes, build real relationships with tenants, and raise the bar for what professional landlording looks like.

“The data shows a generation that sees being a landlord not just as a financial decision, but as a responsibility.”

Inheritance drives entry

Inheritance is expected to play a much bigger part in bringing the next generation into property, with one in three future landlords saying they expect to inherit a home to let.

That compares with 27% of today’s landlords who entered the sector by inheriting a property.

A further 21% of future landlords expect to inherit money to invest, while 13% anticipate taking on an existing portfolio of four or more properties.

Half also plan to pass property to their own family when they eventually leave the sector, compared with 42% of current landlords.

Landlord attitudes changing

Among existing landlords, 82% describe their relationship with tenants as positive, according to separate Landlord Leaders research.

More than half, 55%, said they are spending more time considering the tenant experience, while 59% have spoken directly with tenants to understand their needs.

The proportion feeling optimistic about operating in the sector has risen to 62%, up from 47% last year, with another 25% acknowledging challenges but still describing their outlook as positive.

Mr Hall said: “The picture that emerges is one of pragmatic optimism – a private rented sector that better reflects the country it serves, where landlord and tenant relationships are built on trust, and where professionalism is the norm rather than the exception.

“That future is not just possible; our research shows it is already taking shape.”