The average age of landlords has dropped over the past nine years due to a surge of landlords in their thirties, according to the latest research by Paragon Bank.
The ‘Next Generation Landlord Report’ revealed the number of landlords in their thirties purchasing a new property with a BTL mortgage jumped to 31% in 2023, up from 21% in 2014.
Landlords aged between 18 and 29 also grew to 10% last year, up from 6% of purchases in 2014.
In stark contrast, landlords in their fifties and sixties acquiring new property fell to 20% and 6% respectively from 29% and 10%.
landlords acquiring new property in their forties remained consistent over the period, reducing only slightly to 32% in 2023 from 34% in 2014.
Consequently, the average age of landlords acquiring new property with a BTL mortgage has dropped from 46 in 2014 to just shy of 43 last year.
The report noted that landlords who developed their portfolios in the early days of the BTL market almost 30 years ago were either in retirement or nearing it, making way for new, younger property investors.
“There is a perception that BTL landlords are an aging group, but the majority of new purchases are concentrated in landlords who are under the age of 50,” said Richard Rowntree, managing director at Paragon Bank.
“This group accounted for nearly three-quarters of all BTL purchases last year, highlighting that there remains strong investor appetite for rental property among younger landlords.”
Separate research from Paragon highlighted the majority of aspirational future portfolio landlords were between 25 and 44.
Richard noted that the PRS needed a consistent flow of new landlords coming into the sector and said it “was clear” there was a committed group of younger landlords ready to “take the mantle and provide the rental homes of the future”.
Some 41% of aspirational portfolio landlords are women.
