The Intermediary – October 2025 - Flipbook - Page 34
BUY-TO-LET
Opinion
Landlords are
getting younger.
That’s a good thing
A
s the saying goes, you
know you’re geing
old when police
officers start to look
young. The same
could increasingly be
said of landlords.
The stereotypical image of a
landlord is someone in their fiies
or sixties, perhaps a semi-retired
professional with a handful of
properties. But in reality, the
landlords driving the buy-to-let (BTL)
market are increasingly in their
thirties and forties.
According to trade body UK
Finance, the average age of landlords
buying with a mortgage has dropped
from 47 in 2014 to 43 today.
Separate research by Paragon
shows that landlords in their thirties
accounted for 31% of new purchases
in 2023, up from 21% a decade earlier,
while the share of those in their
fiies and sixties has dropped from
39% to 26%.
Keystone’s own figures tell a
similar story. When we relaunched
in 2018, the average age of landlords
introduced to us was 47. Today it’s
45. More strikingly, the number of
first-time landlords on our books
has grown significantly and now
represents 9% of new business.
The pipeline looks strong, too. A
study by Market Financial Solutions
found that 54% of under-35s want
to become buy-to-let landlords at
some point.
Brits and mortar
So, why are younger investors
increasingly turning to property?
Even with the rise of stock market
investing among younger Brits, the
UK remains a nation of property
lovers. Bricks and mortar are
ingrained in our culture.
32
The Intermediary | October 2025
Unlike shares or bonds, property is
tangible and offers the potential for
both income and capital growth. And
in some parts of the country, gross
yields are approaching double-digits.
While the housing market is
currently cooling – as it does from
time to time – it will recover as
mortgage rates further reduce and the
new-build housing targets fail to reach
Government expectations, restricting
property supply.
It’s easy to see why property remains
a core wealth-building strategy for so
many young people.
This is an overwhelmingly positive
trend. Headlines have decried the
supposed wave of landlords leaving the
sector, but research by Hamptons has
proven that these were mainly older
landlords looking to cash in some of
their assets to fund retirement, while
in a benign tax environment
What such articles fail to
acknowledge is that these landlords
are being replaced by a younger cohort
with decades ahead of them.
Younger landlords bring energy,
enthusiasm and fresh ideas. Many
have likely been tenants themselves,
giving them a sharper sense of what
tenants expect. They also tend to
be faster adopters of technology,
which could make the market more
efficient and improve the tenant
experience. Most importantly, data
suggests that they see property as
a long-term business rather than a
short-term punt.
According to estate agents
Hamptons, around 70% to 75% of
new BTL purchases go into a limited
company structure. Crucially, younger
landlords are driving this shi,
according to the National Residential
Landlords Association (NRLA).
This maers, because landlords
who incorporate tend to build larger
ELISE COOLE
is managing director at
Keystone Property Finance
Even with the rise of
stock market investing
among younger Brits, the
UK remains a nation of
property lovers”
portfolios. The latest English Landlord
Survey, for example, reveals that 56%
of landlords operating as companies
own five or more properties. By
comparison, 86% of individual
landlords own between one and four.
This appetite among younger
landlords to buy through companies
bodes well for long-term demand.
Next generation
The data shows that this new
generation aren’t emerging. They are
already here – and they are young,
ambitious, and ready to shape the
sector for the next 30 years.
For brokers, this shi creates
opportunity. If younger landlords
are increasingly more business-like
in their approach, there will be more
demand for expert advice on how to
structure their increasingly complex
portfolios. Brokers who understand
the motivations and challenges of
younger landlords – and tailor their
advice accordingly – will be best
placed to gain from the rise of the
next generation. ●
