New wave landlords: Under 35s driving property market by prioritising investment over homeownership
New expert insight shows that younger people (25-34 year olds) are investing in property at record levels and are opting to invest in property over purchasing their own residential homes.
Leading estate agents John Minnis say that an increasing number of young people are investing their earnings, working capital and inheritance in property more than ever before due to an ‘increased awareness of wealth-building’ and ‘wealth management.’
Due to high deposit requirements and mortgage rates, many young people now view property investment as a much more viable financial strategy than homeownership. Experts at John Minnis say they are seeing an increasing number of young people preferring to invest money into a property for rental purposes rather than buying their own home.
A report from Paragon Bank indicates a decrease in the average age of buy-to-let landlords, driven by growth in the proportion of landlords in their 30s. In 2023, 31% of new buy-to-let mortgages were acquired by those in their 30s, compared to 21% in 2014. Landlords aged 18-29 also saw an increase in their share of purchases.
Research from September 2024 showed over 3,000 buy-to-let landlords were under 21, and a further 63,000 were aged 21-30, suggesting a growing interest in property investment among the very young. Millennials (31-40) also constitute an increasingly large percentage of investment property owners*.
Another notable trend amongst young people in the real estate market is a recent increase in those investing in a second property for renting or wealth building purposes.
While traditionally this age group has been associated with first-time home purchases, the decision to purchase an additional property is now gaining popularity.
Younger and first-time property investors take advantage of regions with affordability challenges where there are either lower property prices or strong rental demand to secure long-term financial stability.
Research conducted by John Minnis as part of its property investment guide shows that Scotland, Northern Ireland, The Midlands and South-East London are amongst the most popular places to invest due to high rental demand and attract young buyers seeking strong returns.
In many cases, this shift is being driven by strategic financial planning, long-term wealth accumulation and an evolving mindset about the value of property ownership, says company director and founder John Minnis at John Minnis estate agents.
