Buy-to-let is typically associated with an ageing cohort of landlords who are looking to maintain their existing holdings or shrink their portfolios. However, analysis of UK lending data paints a different story, with younger landlords amongst the most active acquirers of new buy-to-let property.
The average age of those purchasing a new buy-to-let property has reduced from 46.4 in 2014 to 42.9 in 2023. Paragon’s analysis of the age of landlords acquiring property with a buy-to-let mortgage shows that the proportion of those in their thirties has risen from 21% of total purchases in 2014 to 31% last year. Similarly, those aged between 18 and 29 accounted for one in 10 buy-to-let mortgaged house purchases last year, compared to 6% in 2014.
Conversely, landlords in their fifties have reduced from 29% of purchases to 20% across the same time period, whilst those aged 60+ now account for 7% of purchases compared to one in 10 a decade ago. Landlords in their forties remain the dominant group, accounting for 32% of buy-to-let house purchases last year, compared to 34% in 2014.
Overall, nearly three quarters of buy-to-let properties purchased last year were made by a landlord aged 49 or younger, compared to six in 10 a decade previously.
Read the full report here.
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