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.

He adds:

“Many young people now view property investment as a much more viable financial strategy than homeownership.

“The younger generation looking to get into the property market is all to do with wealth building and financial security. In a time of increasing economic uncertainty and inflation, young people are seeking alternative ways to build wealth beyond traditional savings accounts and investments. Purchasing a second property allows them to leverage real estate as a long-term asset.

“With the growing demand for rental properties, especially in urban areas, many young investors see the potential to generate passive income by renting out their second property. The rental market has become more lucrative in recent years, providing a steady cash flow and helping to offset mortgage costs.”

Property expert and founder at John Minnis believes that this trend is only expected to continue. He says:

“In today’s economic climate, many young people are turning to property investment as a strategic means to build wealth and secure financial stability.

“They recognise that investing in real estate not only offers potential appreciation over time but also provides a source of passive income through rentals.

“This approach allows them to enter the property market earlier, leveraging their investments to eventually acquire their own homes with greater financial confidence.”

The combination of low-interest rates, increased access to financial resources, and the growing desire for long-term wealth has converged at a time when the housing market offers promising returns for investors. Additionally, many young adults are facing challenges entering the traditional housing market due to soaring home prices, prompting them to pivot to investment properties as a more feasible alternative.

As more young adults in the 25-34 age range look to build wealth, diversify their assets, and secure financial freedom, the investment in second properties is emerging as a key strategy. With the right market conditions, access to information, and financing options, this trend is expected to continue as the next generation of investors takes a more proactive approach to real estate.

For more information or inquiries about property investment trends and the best places to invest in the UK, visit: https://www.johnminnis.co.uk/investment-guide

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

The five MOST searched mortgage questions answered by a property expert

With terms including the word ‘mortgages’ generating over half-a-million Google searches a month (595k) in the UK alone, it’s clear that many prospective homeowners are still confused about how mortgages work, what they’re eligible for, and how to navigate a challenging market. To help provide clarity, Luke Williams, Specialist Property Advisor, at Pure Property Finance,…
Read More
Breaking News

53% of Tenants likely to challenge rent increases, but fair landlords have little to fear, says LRG report

More than half of tenants say they are likely to challenge rent increases under the incoming Renters’ Rights Bill (RRB), according to new research by LRG (Leaders Romans Group). However, the figures also show that nearly half of the tenants surveyed would not look to challenge a rent increase, a reflection, LRG says, of the…
Read More
Breaking News

Nationwide report Rural rules the roost

Rural rules the roost as countryside homes plough ahead of urban properties for house price growth House prices in predominantly rural areas have risen by 23% over the last five years, compared to 18% in predominantly urban areas Rural terraced properties have seen the strongest rate of price growth, urban flats the weakest Commenting on…
Read More
what is happening to house prices
Letting Agent Talk

Smart Upgrades: Boosting Rental Property Value Without Breaking the Bank

Most landlords don’t have a vault of gold stashed away for renovations. If you do, good for you (and maybe hide it better?). But for the rest of us, improving a rental property usually means walking a tightrope between cost and ROI. So what can you actually do that won’t drain your savings, and still…
Read More
Home and Living

Creating the Perfect Rental: Balancing Aesthetics, Functionality, and ROI

Let’s get this out of the way: “perfect” is doing a lot of heavy lifting in that title. Because, really, no rental is perfect. Not for everyone. Not forever. But if you’re aiming to create a rental that looks good, works well, and pays you back in more than just stress headaches? You’re in the…
Read More
Letting Agent Talk

The Landlord’s Guide to Hassle-Free Maintenance and Long-Term Tenant Satisfaction

Do you own rental property? If yes, you already know that you are being put on a test: keeping things running smoothly while somehow managing not to lose your mind (or your best tenants). Maintenance. It’s not fun. But neglect it, and your rental becomes a revolving door of disappointed tenants and mounting repair bills.…
Read More