First-time buyers might be getting older, but when it comes to landlords, it’s a different story.
A new survey* has found that in the past nine years, there’s been a drop in the average age of landlords in the UK.
Back in 2014, the average age for a landlord purchasing a rental with a buy-to-let mortgage was 46.4.
By 2023, that figure was down to 42.9.
Age breakdown
Young adults are often presented in the media as economic lightweights who fritter their cash away on avocado toast and pumpkin spice lattes. But take a deeper dive into the figures, and it’s clear that some ambitious young guns are putting their money into the private rental sector.
The survey found 11% of landlords were 18 to 24, 35% were 25 to 34, and 31% were 35 to 44.
Some said they got into the lettings sector because they’d seen family or friends benefit from it.
Others were attracted by the rental income or had purchased a second property and decided to let out their original home, rather than sell up.
About three-quarters were higher-rate taxpayers in full-time employment.
Relying on a letting agent
How do these high achievers juggle their well-paid jobs and (presumably busy) social lives with their landlord duties?
Many of them draw on the expertise of a letting agent to manage at least some of the operational challenges of managing a property.
45% reported working very closely, and 38% “somewhat closely”, with a letting agent. They cited late payments, property damage by tenants and/or pets and anti-social behaviour as the biggest headaches.
Outlook
There’s often a perception that landlords are older and wealthy. But this stereotype appears to be out of date.
It’s clear from these figures that the sector is more diverse than some presume and includes a new breed of younger, aspirational landlords with long-term goals.
They’re looking to the future and have become landlords to bolster their retirement income and, in many cases, build a legacy they can pass on to their children.
Looking to take your first steps on the BTL ladder and join Generation Landlord? Contact us to discuss our property management services.
*Next Generation Landlord Report 2024, Paragon Bank. Survey of 500 landlords with one to three properties.
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