First-time buyers might be getting older, but when it comes to landlords, it’s a different story. A new survey has found that the average age of landlords in the UK rental market has been decreasing over the past nine years. In 2014, the average age of a landlord purchasing a rental with a buy-to-let mortgage was 46.4 years. By 2023, this figure had dropped to 42.9 years, highlighting a notable demographic shift in the rental market.
Age Breakdown: A New Generation of Landlords
Young adults are often stereotyped as financially irresponsible, spending frivolously on avocado toast and pumpkin spice lattes. However, a closer look at the data reveals that some ambitious young investors are choosing to enter the UK rental market. The survey found that 11% of landlords were aged 18 to 24, 35% were aged 25 to 34, and 31% were aged 35 to 44.
Many of these younger landlords were motivated by seeing family or friends benefit from the lettings sector. Others were drawn by the potential rental income or decided to rent out their previous home instead of selling it when purchasing a new property. It’s worth noting that about three-quarters of these landlords are higher-rate taxpayers in full-time employment, demonstrating their financial stability and long-term commitment to the rental market.
Why Younger Landlords Rely on Letting Agents
Managing a rental property can be challenging, especially for younger landlords who are juggling well-paid jobs and active social lives. Many of them turn to professional letting agents to handle at least some of the operational aspects of property management. The survey revealed that 45% of these landlords reported working very closely with a letting agent, while 38% said they worked “somewhat closely” with one. Their main concerns include late payments, property damage caused by tenants or pets, and dealing with anti-social behaviour.
Changing Perceptions in the Rental Market
There’s a common perception that landlords are typically older and wealthy, but this stereotype is becoming increasingly outdated. The UK rental market is now more diverse, with a growing number of younger, aspirational landlords who are planning for the future. These individuals view property investment as a way to bolster their retirement income and, in many cases, build a legacy to pass on to their children.
Looking to Join the Next Generation of Landlords?
If you’re considering taking your first steps on the buy-to-let ladder and joining the new wave of younger landlords in the UK rental market, we’re here to help. Contact us to discuss how our property management services can support you in navigating the rental market and achieving your long-term investment goals.
Source: Next Generation Landlord Report 2024, Paragon Bank. Survey of 500 landlords with one to three properties.
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