Older landlords are cashing out, and a new generation of property investors are entering the market
While the property market is facing increasing challenges, with higher taxes, stricter regulations, and growing renter rights, the average landlord is getting younger.
As older landlords are selling up, a new generation of investors, mainly in their 30s, are buying in. This has led to a significant shift in the age profile of landlords, with the average age falling from 46.4 to 42.9 over the past decade.
A New Generation of Landlords
The trend is clear: older landlords are exiting the market, while younger investors are taking their place. This is driven by a number of factors, including:
- Changing retirement plans: Older landlords who entered the market in the 1990s are reaching retirement age and may be looking to downsize or sell their portfolios.
- A desire for financial security: Younger generations are increasingly looking to property as a way to build wealth and secure their financial future, particularly as traditional pensions become less reliable.
- The rise of online information: The internet has made it easier than ever to learn about property investing, with numerous online resources and social media influencers sharing their experiences.
The Future of the Buy-to-Let Market
While some are concerned about the potential impact of increased regulation on the buy-to-let market, younger landlords are undeterred. They are confident that they can cope with the changing situation and build successful portfolios.
The data clearly shows that younger landlords are increasingly becoming the dominant force in the buy-to-let market. The future of the market will likely be shaped by their decisions and strategies.
Landlords Get Younger
Data from Paragon Bank shows that the number of landlords in their 50s has fallen significantly in the last decade, from 29% in 2014 to 20% in 2023. Landlords in their 60s are now a smaller proportion of the market, making up only 6% compared to 10% in 2014.
Meanwhile, landlords in their 30s now make up 31% of all landlords, compared with 21% back in 2014.
Meet the New Landlords
Several young landlords shared their stories and experiences with The Telegraph.
- Angharad Trueman, 35, is a letting agent who bought her first buy-to-let property two years ago. She plans to build a portfolio of properties over the next 15 years, using the rental income to save for retirement. She’s not worried about short-term challenges, believing this is a long-term investment.
- Kazeem Alli-Balogun, 35, bought his first rental property in his twenties and now owns around 20 properties. He believes the uncertainty surrounding pensions is driving younger people to find alternative ways to secure their futures. He also believes young landlords are innovative and adaptable, finding new ways to create profitable rental opportunities.
- Michael Mortimer, 34, is a landlord and estate agent in the North East of England, where property prices are lower. He’s seeing a surge in young landlords entering the market, often inspired by online resources and influencers. He believes this is partly due to the rise of “passive income” as a goal for young professionals.
What Does the Future Hold?
Despite the challenges, younger landlords are confident about the future of the buy-to-let market. They are adaptable, innovative, and are focused on building long-term wealth through property investment. As the average age of landlords continues to fall, the buy-to-let market is likely to see significant changes in the years to come.