BTL lender Paragon asked 500 landlords about their aspirations to develop property portfolios, what is driving them, their influences and how they plan to grow their property businesses.

With the buy-to-let boom now approaching its 30th anniversary, many of its original investors are now downsizing their portfolios or selling up entirely in retirement.

Getting younger

Paragon’s research shows that a new, younger generation is emerging to replace them and those younger landlords are now amongst the most active buyers of buy-to-let property.

And their average age has reduced from 46.4 years old in 2014 to 42.9 in 2023 and is still falling.

This is encouraging as it highlights that property investment is still viewed as an attractive asset class.”

Richard Rowntree Paragon Bank Managing Director of Mortgages says: “This is encouraging as it highlights that property investment is still viewed as an attractive asset class by a demographic with so many investment opportunities competing for their capital.”

A typical landlord is now in full-time employment, 42.9 years old, could be male or female, earns between £25,000 and £150,000, most likely lives in London (32%) and has between 1 and 3 properties.

Having family and friends with existing property businesses were key drivers for 43% of them becoming landlords, followed by a desire to develop a long-term rental income.

A large proportion became landlords by accident – 39% after purchasing a second home, 20% because they inherited a property and 12% after moving in with a new partner.

When asked why they chose property investment over other asset classes, the majority of next-generation landlords said (67% ) that it was because it was a tangible asset.

And they see a future in BTL too with 55% building their portfolios as a means to long-term wealth, a similar proportion to supplement their income and 53% to provide a pension.

Although the majority of those aspiring landlords are looking at flats and houses, there is a growing interest in HMOs and MUBs.