Millennials and Gen Z to take over landlord market in next decade

The PRS faces a generational shift with new Rely research finding Millennials and Gen Z are set to represent 62% of landlords within a decade.

Today, Baby Boomers and Generation X account for 54% of landlords. Within a decade, that falls to 37%, as Millennials rise to 44% of the market and Gen Z reaches 18%.

Rely is forecasting the incoming cohort is also more diverse with ethnic minority representation among landlords set to more than double from 11% to 23%, and the proportion of female landlords rising from 36% to 42%.

This new generation of landlords will also mean changes to how they access finance and acquire portfolio opportunities.

Inheritance overtakes savings is set to become the primary route into the market. As such, 36% of future landlords expect to inherit property, vs 27% today.

Half of future landlords plan to pass their property to family when they eventually exit, up from 42% of today’s landlords.

“The landlords entering the market over the next decade won’t necessarily look like the ones brokers have worked with over the last twenty years,” said Jon Hall, group CCO at OSB Group (pictured above).

“The lenders and brokers that will succeed in this next chapter won’t simply have the fastest processes.

“They’ll be the ones that combine great technology with the expertise and relationships that brokers and landlords rely on when it really matters.”