A recent report reveals that millennials now constitute 50% of new buy-to-let investors in England and Wales, indicating a notable generational shift among landlords. Despite challenges in affording homeownership, many millennials appear to be finding opportunities in the buy-to-let market, as highlighted by a review of Companies House data by the estate agent Hamptons.
This year marks the first occasion that millennials have accounted for half of all new shareholders in buy-to-let companies, a significant increase from 40% five years ago. In the current year, approximately 75% of shareholders in new companies are under the age of 50, reflecting an increase from 68% a decade ago. Although some landlords are selling their properties due to tax increases and tighter regulations, the growing number of younger investors has contributed to ongoing landlord purchases.
The proportion of properties bought by landlords in England and Wales has remained stable compared to last year, despite the introduction of a 5% second home stamp duty surcharge in April. Landlords represented 11.3% of property purchases in the third quarter, slightly up from 11.2% a year prior. Hamptons estimates that millennial landlords are expected to establish roughly 33,395 new buy-to-let companies this year, more than double the number from 2020.
Geographically, there is a noticeable trend as investors increasingly focus on the north of England, where property prices are more affordable and yields are higher. In fact, over 28% of homes in the north-east have been purchased by landlords, in contrast to only 8% in London.
Additionally, average rents for newly let homes in Britain declined by 0.3% in the year leading up to September, a shift from the 4.2% annual growth recorded the previous year. This rental decrease is partly driven by declining prices in London, where rents fell by 2.7%. Despite this, rents for renewed contracts have continued to rise.
The rise in buy-to-let businesses has marked them as the largest single type of business in the UK this year. This trend reflects the evolving landscape of property investment as younger generations, including Gen Z, begin to take a more active role in shaping the market.
Source: https://www.theguardian.com/money/2025/oct/13/generational-shift-as-millennials-make-up-half-of-new-buy-to-let-investors-in-england-and-wales