Generation Z landlords on the rise as property investment gains popularity
More than 3,000 buy-to-let landlords in the UK are now under the age of 21, according to a new study.
Research by UHY Hacker Young Accountants reveals Gen Z landlords are now collectively earning more than a whopping £66 million in rental income.
Despite young property investors making their mark the 51-60 age group remains the largest group of landlords.
Number of landlords aged 65 and over has increased
According to the data, the number of landlords in the UK aged 65 and over has grown.
There are now 696,000 landlords in this age group, up 20% from 582,000 in 2018. Despite the overall number of landlords falling by 1.7% to 2.7 million, the 65+ cohort now earns over 27% of all income earned from UK rental properties – equivalent to £11.5 billion last year.
The 51-60 age group remains the largest segment of landlords, with 723,000 individuals declaring income from property. In total, 1.67 million landlords in the UK are aged above 51, representing 63% of all landlords.
Value of investing in property
Neela Chauhan, partner in UHY Hacker Young Accountants London office, says property investment is becoming popular among the younger generation.
She said: “The large number of under-21 landlords show that the newest generation not only sees the value of investing in property – but also investing early.”
“Buy-to-let investments have been hit by a number of negative tax changes in recent years. However, with such a large number of investors in the UK now basing their retirement income partly on buy-to-let property, we hope the new government won’t undermine the sector.”
The total income received from rental properties across the UK reached £41.4 billion in 2022, up from £40.2 billion in 2021.
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My landlord has just increased my rent by £700 per month
Member Since March 2023 - Comments: 1506
10:46 AM, 21st August 2024, About 2 years ago
Maybe so, but BTL in the PRS is declining – and will continue to do so – just wait till after the budget in October
Member Since July 2013 - Comments: 97
10:59 AM, 21st August 2024, About 2 years ago
Talk about confusing,
Why is it that every other article I read either says that the Private rental sector is declining or it is expanding.
Member Since June 2015 - Comments: 333
11:31 AM, 21st August 2024, About 2 years ago
3000 out of nearly 3 million landlords is a teeny tiny percentage.
How many of them are students who’s parents have decided to fund a BTL in their child’s name to avoid paying for student accommodation and the 3% SDLT surcharge? A couple of other students paying rent covers the mortgage.
How many are young people who’s parents have transferred their own BTLs into the child’s name to help minimise IHT?
Member Since October 2013 - Comments: 1642 - Articles: 3
12:10 PM, 21st August 2024, About 2 years ago
Reply to the comment left by Jo Westlake at 21/08/2024 – 11:31
I was just about to say the same thing. My partner is currently transferring her rental to her son, one of my sisters bought a house in her student daughter’s name and the rent paid the mortgage, and another sister was going to do it but decided to leave the PRS. I will end my 25 year BTL journey over the next few month. That’s 4 in just one family.
Member Since May 2021 - Comments: 392
2:41 PM, 21st August 2024, About 2 years ago
Reply to the comment left by NewYorkie at 21/08/2024 – 12:10
If you run out of siblings just give me a nudge ?
Member Since October 2013 - Comments: 1642 - Articles: 3
3:19 PM, 21st August 2024, About 2 years ago
Reply to the comment left by PH at 21/08/2024 – 14:41
I’ve got one more, but you really wouldn’t want to know her ?
Member Since March 2023 - Comments: 1506
4:09 PM, 21st August 2024, About 2 years ago
The trouble with transferring the property into the childs name is you are still liable for CGT and can only do if you don’t have a mortgage as you would have to re-arrange the mortgage which would be unlikely to be allowed
Member Since October 2013 - Comments: 1642 - Articles: 3
7:31 PM, 21st August 2024, About 2 years ago
Reply to the comment left by GlanACC at 21/08/2024 – 16:09Bitten that bullet. Determined to give the taxman the bare minimum now, before the power-crazed politician in No11 hits us even harder in October.
Member Since March 2023 - Comments: 1506
9:37 PM, 21st August 2024, About 2 years ago
Reply to the comment left by NewYorkie at 21/08/2024 – 19:31
I am going through the same issue with my LTD company. I am starting by splitting the shares my wife and I own and introducing some non voting non dividend shares.
We also have a partnership which is a bit more difficult to sort out without incurring substantial CGT (looked at the 118 ‘solution’ but my accountant advised against it).