Gen Z-ers join the buy-to-let investment trend
Survey shows more than 3,000 buy-to-let investors are now under 21.
Ask an agent to define a typical buy-to-let landlord and they would probably say a 50-something investor building a pension portfolio.
Yet new research shows that Gen Z – those born after 1996 – see property as a good investment, too.
More than 3,000 buy-to-let landlords are under 21, generating £66 million in rental income, according to research by accountancy group UHY Hacker Young.
A further 63,000 landlords are aged between 21 and 30, with a total property income of £786 million.
More millennials investing
Millennials (or Gen Y) now make up an increasingly large percentage of investment property owners, with 318,000 aged 31-40 generating more than £4 million in rent.
However, Generation X (1965-1980) and Baby Boomers (1946-1964) remain the largest landlord groupings by age.
Gen X accounts for more than 1.3 million landlords, while there are 960,000 Boomers with investment properties.
In total, 1.67 million landlords in the UK are aged above 51, representing 63% of all landlords
Benefit of investing early
“The large number of under-21 landlords show that the newest generation not only sees the value of investing in property – but also investing early,” said Neela Chauhan, Partner at UHY Hacker Young.
“Buy-to-let investments have been hit by a number of negative tax changes in recent years. However, with such a large number of investors in the UK now basing their retirement income partly on buy-to-let property, we hope the new government won’t undermine the sector.”
The total income received from rental properties across the UK reached £41.4 billion in 2022, up from £40.2 billion in 2021, highlighting the continued strength of the rental property market.
UHY Hacker Young warns that many landlords, especially pensioners earning over the annual threshold of £12,570, may not be fully aware of their tax obligations and should seek professional advice.
Chauhan added: “The tax code has become increasingly complex in recent years, and this is especially true for rental income. Proper financial planning is critical to managing rental income effectively and avoiding costly fines from the taxman.”
Number of buy to let landlords broken down by age and the total value of property income 2022-2023
| Age of landlord | Number of individuals that are property landlords (thousands) | Total value of property income (£ millions) |
| 0-12 | 0 | 18 |
| 13-18 | 0 | 24 |
| 19-20 | 3 | 24 |
| 21-30 | 63 | 786 |
| 31-40 | 318 | 4,098 |
| 41-50 | 582 | 8,520 |
| 51-60 | 708 | 11,670 |
| 61-64 | 264 | 4,446 |
| 65+ | 696 | 11,532 |
| All | 2,649 | 41,338 |
Source: UHY Hacker Young
