Millennials drive surge in buy to let market activity

Millennials are taking the lead when it comes to PRS investment in England and Wales, becoming the dominant force behind new buy to let company formations despite tougher tax measures.

And that’s despite many of them struggling to buy their own homes.

Research by Hamptons of Companies House and Connells Group sales data, shows that Millennials – those born between 1981 and 1996 – now make up half of all shareholders in BTL companies created so far this year.

Based on current trends, they are expected to establish 33,395 new property investment firms in 2025, a figure more than double that of 2020.

BTL sector is adapting

Hamptons’ head of research, Aneisha Beveridge, said: “Landlord purchases haven’t collapsed in the face of higher taxes and tighter regulation – but they have shifted.

“New landlords have increasingly become an endangered species in markets across Southern England, where big stamp duty bills and flatlining prices have nudged investors northwards.

“But in places like the North East, landlord activity remains close to all-time highs, showing that the buy to let market is adapting rather than retreating.”

Landlord investment is shifting

While rising stamp duty rates might have been expected to slow investor activity, the share of homes bought by landlords across England and Wales has held steady.

In the third quarter of 2025, landlords accounted for 11.3% of purchases, a slight uptick from 11.2% the year before.

That’s despite the stamp duty surcharge for second homes rose from 3% to 5% in April.

The pattern of investment, however, is shifting geographically.

Landlords are moving away from southern regions towards the North of England, where returns are stronger.

Landlords head North

Hamptons says that in the North East, 28.4% of homes sold in Q3 2025 went to landlords, compared with only 8% in London.

The North East has recorded investor shares above 20% in nine of the past 10 years.

Across London, the South East, South West and East of England, landlords were responsible for just over a third of all investor purchases, down from half in 2016.

In these regions, more than half of Connells Group branches did not sell a single home to a landlord during the third quarter.

Millennials outnumber Baby Boomers

The generational divide among investors is also widening as Millennials now far outnumber Baby Boomers (born 1946-1964) and have surpassed Generation X (born 1965-1980) in new company formations since 2022.

This year, Generation X accounts for 33% of shareholders in new BTL firms, followed by Generation Z with 10% and Baby Boomers with only 7%.

Three-quarters of new company shareholders are now under 50, compared with 68% 10 years ago.

Landlords are getting younger

Ms Beveridge said: “What’s striking is the rise of younger landlords.

“Millennials – many of whom have struggled to buy their own home – are now leading the charge in buy to let.

“Thirty years on from the invention of the buy to let mortgage, which kick-started investment by Baby Boomers, it’s clear that a new generation is finding alternative ways to build wealth through bricks and mortar.”

She adds: “Despite the challenges, Millennials and Gen Z are showing a similar appetite for long-term property investment, which is helping to stabilise the market.”