Millennials have overtaken other generations to account for half of all new buy-to-let investors in England and Wales, according to analysis by estate agent Hamptons. The surprise finding signals a generational shift in landlord demographics, despite many within this age group struggling to afford their own homes.
For the first time, people born between 1981 and 1996 make up 50% of new shareholders in buy-to-let companies set up so far this year, up from 40% five years ago. Three-quarters of shareholders in newly formed companies are now under 50, compared with 68% a decade ago. Hamptons estimates millennial landlords will create 33,395 new buy-to-let companies this year, more than double the number incorporated in 2020.
The influx of younger investors has helped sustain landlord purchases, which remained largely unchanged at 11.3% of property purchases in the third quarter, up slightly from 11.2% a year earlier. However, activity is shifting away from southern England, which previously dominated the market. London, the south-east, south-west and east of England accounted for just 34% of investor purchases between July and September, down from 50% in 2016. Investors are increasingly targeting the north, where higher yields and cheaper properties reduce stamp duty costs. Over a quarter (28.4%) of homes sold in the north-east were bought by landlords, compared with 8% in London.
The report also shows a cooling rental market, with the average rent for a newly let home in Britain falling by 0.3% in the year to September, down £4 a month to £1,398. London drove the decline, where monthly rents dropped 2.7% (£65), and inner London rents fell 4.6% to £2,766, £165 below their October 2024 peak. In contrast, rents on renewed contracts rose 4.6% over the same period.
Buy-to-let businesses have become the largest single type of company in the UK, outnumbering fast-food takeaways and hairdressers by almost four to one. The shift reflects baby boomers in their 60s and 70s winding down portfolios, while for the first time, the number of Gen Z-led companies surpassed new incorporations from baby boomers this year.
