Rise of Millennial Landlords in England and Wales
New data has revealed a significant shift in the buy-to-let market in England and Wales, with millennials making up a record 50 per cent of new investors. This trend highlights a growing interest among younger generations in real estate as a means of building wealth.
According to Hamptons, an estate agent, three-quarters of shareholders in new buy-to-let businesses this year were born between 1981 and 1996, a marked increase from 68 per cent a decade ago. This surge in young landlords is described as “striking” by the company, given that older individuals typically have more financial resources and inclination to invest in property.
In 2016, only 24 per cent of those signing up to become new buy-to-let landlords through a limited company were millennials. This figure rose to 40 per cent by 2020, indicating a steady increase in participation. Aneisha Beveridge, head of research at Hamptons, noted that many millennials, who have faced challenges in purchasing their own homes, are now leading the charge in the buy-to-let market. She added that a new generation is finding alternative ways to build wealth through real estate.
Hamptons estimates that millennials will set up 33,395 new buy-to-let companies this year, which is 142 per cent higher than the number incorporated among this age group in 2020. This growth coincides with a broader trend of landlords opting for a company structure to manage their properties. While some choose to own properties under their personal names, others prefer a limited company, which can offer tax advantages in certain situations.
Generation X, born between 1965 and 1980, comprised 33 per cent of new shareholders in buy-to-let limited companies this year, compared to 7 per cent in the Baby Boomer age group. Ten per cent of new buy-to-let landlords this year were born between 1997 and 2012, representing Generation Z.
Chris Norris, chief policy officer at the National Residential Landlords Association, mentioned that people of all ages enter the rental market for various reasons, with many becoming “accidental landlords.” Some younger landlords may have inherited properties and decided to let them out, while others aim to build a portfolio of rented homes. He also noted that millennials are often at the peak of their careers and may follow the investment examples of previous generations.
Despite tax hikes and tighter regulations, the rise of younger investors has helped sustain landlord purchases. However, some landlords are reported to be trying to sell properties ahead of the upcoming Renters’ Rights Bill, set to become law in early 2026. This bill is expected to impose stricter restrictions on evictions and rent increases. Experts had warned that this could lead to a shortage of properties, potentially driving up rents. However, it now appears that many landlords are struggling to sell, forcing them to limit rent increases to retain tenants.
Regional Trends in Buy-to-Let Investments
Buy-to-let landlords seeking value and returns are avoiding the south of England, according to Hamptons. In the third quarter of this year, London, the southeast, southwest, and east of England accounted for just 34 per cent of buy-to-let purchases, down from 50 per cent in 2016. In London, landlords purchased 8 per cent of homes sold in the third quarter, the lowest figure since the same period in 2020.
Landlords were also “small players” in the southwest of England, accounting for 8.1 per cent of property purchases in the quarter. In the east of England, the proportion of buy-to-let purchases was 8.2 per cent. Across these regions, 52 per cent of estate agents did not sell a single home to a landlord during the quarter.
By contrast, the northeast of England remains a hotspot for investors, with landlords accounting for 28.4 per cent of purchases during the quarter—more than triple the London average. Hamptons noted that the share of homes bought by investors in the northeast has exceeded 20 per cent in nine of the last decade. This is attributed to lower property prices, which have partially shielded investors from the impact of the SDLT surcharge, alongside higher yields.
Overall, the share of homes purchased by landlords has remained unchanged from last year, despite higher charges for stamp duty on second homes. Hamptons’ analysis suggests that the average rent for a newly let home across Britain fell by 0.3 per cent in the year to September 2025, down £4 per month from £1,402 to £1,398. Average rents in London fell 2.7 per cent, or £65. A year earlier, national growth of 4.2 per cent was recorded.
