More and more wannabe landlords in their 20s and early 30s are ploughing their savings and disposable income into buy-to-let property rather than buying their own home, an estate agency boss has claimed.
John Minnis, founder of an eponymous estate agency in Northern Ireland and a leading figure within its housing market, says many of these younger investors view property as a strategic investment rather than a lifestyle decision.
“We’re seeing a distinct shift in the landlord demographic – this rise of the young landlord is reshaping the private rental landscape and bringing a fresh, data-driven approach to property investment,” he says.
“An increasing number of young people are also investing their earnings, working capital and inheritance in property
“An increasing number of young people are also 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.”
Paragon Bank recently highlighted a decrease in the average age of buy-to-let landlords, revealing that 31% of new buy-to-let mortgages in 2023 were acquired by those in their 30s, compared to 21% in 2014.
And last year research by accountancy group UHY Hacker Young found that more than 3,000 buy-to-let landlords are under 21, generating £66 million in rental income.
The comments by Minnis include his belief that Belfast is currently the key investment hotspot for landlords within the UK, followed by Manchester, Bristol, Leeds and Bangor.
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