Young Brits increasingly opt for landlord investments

British adults aged 25-34 are transforming the nation’s property scene, opting to pour record levels of money into investment properties instead of buying homes to live in, research reveals.

According to estate agents John Minnis, the trend signals a sharp focus on securing long-term wealth and financial stability.

It reports a marked rise in young people preferring to invest with salaries, business funds and inherited wealth.

The firm adds that the drive comes from a deeper grasp of financial planning and a desire for lasting prosperity.

Young landlords build wealth

The agency’s founder, John Minnis, said: “Many young people now view property investment as a much more viable financial strategy than homeownership.

“The younger generation looking to get into the property market is all to do with wealth building and financial security.

“In a time of increasing economic uncertainty and inflation, young people are seeking alternative ways to build wealth beyond traditional savings accounts and investments.

“Purchasing a second property allows them to leverage real estate as a long-term asset.”

He added: “With the growing demand for rental properties, especially in urban areas, many young investors see the potential to generate passive income by renting out their second property.

“The rental market has become more lucrative in recent years, providing a steady cash flow and helping to offset mortgage costs.”

Average BTL landlord age

According to recent research from Paragon Bank, the average age of buy to let landlords is dropping, with 31% of new BTL mortgages in 2023 taken by those in their 30s, compared to 21% in 2014.

Even younger landlords, aged 18-29, are carving out a bigger slice of the market.

Figures from September 2024 highlight this shift: more than 3,000 buy to let landlords were under 21, with another 63,000 aged 21-30.

Millennials, now 31-40, are also snapping up a growing share of investment properties, broadening their financial portfolios.

A standout pattern is the increasing number of young investors buying second properties to earn rental income or grow wealth.

Regions like Scotland, Northern Ireland, the Midlands and South-East London are hotspots.