Potential pitfalls when inheriting rental properties
5 months ago
Inheritance boom could create more landlords
12:01 AM, 5th October 2026, 3 weeks ago
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An inheritance boom could create a new generation of landlords as wealth passes between generations, according to one firm.
John Minnis estate agents say that for homeowners receiving a substantial sum, buying a property to let could become one of their options.
It points to Resolution Foundation research which shows that around 670,000 adults received inheritances worth at least £50,000 during 2018–20.
The agency’s founder, John Minnis, predicts that inherited wealth could help more people enter the lettings market over the next decade.
Inheritance opens investment choices
He said: “We’re entering a period where property wealth accumulated over decades is going to move between generations on a much greater scale.
“For someone who already owns their own home, receiving £50,000, £100,000 or more can create a completely different set of financial choices.”
Mr Minnis added: “They might reduce their mortgage, invest in stocks and shares, keep the money in savings or spend some of it.”
He says buying a property to rent out will be among a popular choice.
More substantial inheritances
The Resolution Foundation research found that 2.1 million adults received an inheritance during 2018–20, compared with 1.7 million during 2008–10.
The proportion receiving at least £50,000 increased from 25% to 32% between those periods.
That equates to 670,000 recipients of inheritances worth £50,000 or more during the later two-year period.
However, the agency acknowledges that receiving an inheritance does not automatically lead to property investment.
Future buy to let investors
Mr Minnis expects people using inherited wealth, alongside those who become landlords without initially planning to, to account for a bigger share of Britain’s lettings market.
Separate research by his agency suggests that future landlords are increasingly likely to enter the market earlier in life and regard property as part of a wider investment portfolio.
It also points to a willingness to buy beyond their local area, targeting places with strong tenant demand, regeneration opportunities and prospects for long-term growth.
The agency says many are looking to build portfolios across different locations and property types, rather than buying a single buy to let home.
Tags:
Accidental landlords, Buy to let, inheritance, intergenerational wealth, Landlords, Property investment
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Member Since June 2019 - Comments: 978
9:28 AM, 5th October 2026, About 3 weeks ago
My children are absolutely certain that they do not want to inherit a rental business, just too toxic and too much petty and constantly changing legislation bear traps.
Member Since April 2018 - Comments: 665
10:13 AM, 5th October 2026, About 3 weeks ago
More fool them.Do they know what they are letting themselves in for!
Member Since January 2015 - Comments: 1635 - Articles: 1
10:36 AM, 5th October 2026, About 3 weeks ago
I seriously doubt they do want to either inherit a BTL business or enter the market themselves.
My daughter was adamant she did not want to be a landlord, not even under the Rent a Room Scheme, as had all her life seen the stress and work that can be involved.
Member Since January 2024 - Comments: 436
11:08 AM, 5th October 2026, About 3 weeks ago
Why would they invest in BTL when they can probably make more money with less risk, tax, costs, stress and administration, by just investing in tracker funds?
Member Since October 2013 - Comments: 1760 - Articles: 3
5:50 PM, 5th October 2026, About 3 weeks ago
My partner transferred her 4-bed house to her 25 year old son and it lets very well. But there is no mortgage, the typical tenant has kids at the local private schools, and it is fully managed by a local agent. The current tenant is a Partner in a law firm on £500k pa, so no worries there. Her son has no interest in being a landlord, apart from the £2.5k income per month. He did consider buying another 2-bed locally, and was due to exchange 3 weeks ago, but had a last minute change of mind after discussing the current BTL situation with us. He’s investing the cash in stocks & shares, ISA, and pension.
Member Since March 2023 - Comments: 12
1:46 PM, 6th October 2026, About 3 weeks ago
Reply to the comment left by NewYorkie at 05/10/2026 – 17:50
Nice, so bailed just prior to the agreement. Seller must be impressed.
Member Since October 2013 - Comments: 1760 - Articles: 3
6:02 PM, 6th October 2026, About 3 weeks ago
Reply to the comment left by Peter Watson at 06/10/2026 – 13:46
The solicitor was being totally unreasonable in their ‘source of funds’ digging. He told them what they were asking for was overreach, but they were insistent. He had rushed into the purchase without really thinking, and this gave him time to reconsider, which he did. Too late, the solicitor came back and said they didn’t need all the information after all. Sorry for the seller, but there were a few structural concerns which he wasn’t willing to compromise on.