The average age of landlords acquiring new rental properties with buy-to-let (BTL) mortgages has declined over the past ten years, according to findings from Paragon Bank. This trend is primarily driven by an increase in younger landlords, particularly those in their 30s.

In 2014, the typical age of BTL landlords purchasing new properties with a mortgage was 46.4 years. By last year, this average had decreased to 42.9 years.

This demographic shift is underscored by a rise in landlords in their 30s, who constituted 21% of BTL mortgage purchases in 2014, compared to 31% last year.

Paragon’s ‘Next Generation Landlord Report’ focused on landlords owning one to three properties and their plans to expand. The data indicated that while the proportion of landlords in their 40s remained relatively steady—34% in 2014 and 32% in 2023—there was a noticeable reduction in the number of landlords in their 50s and 60s. Landlords in their 50s made up 29% of purchases in 2014, which fell to 20% last year, and those in their 60s decreased from 10% to 6%.

Conversely, younger landlords aged 18 to 29 increased their share of purchases from 6% in 2014 to 10% last year.

Additional research by Paragon highlighted that most aspiring portfolio landlords are in their 30s. A survey of 500 landlords with up to three properties, who aim to expand their portfolios, showed an average age of 37.8 years. The largest age group was 25 to 34, comprising 35%, followed by those aged 35 to 44 at 31%.

Richard Rowntree, managing director of mortgages at Paragon Bank, commented: “There is a perception that buy-to-let landlords are an aging group, but the majority of new purchases are concentrated in landlords who are under the age of 50. This group accounted for nearly three quarters of all buy-to-let purchases last year, highlighting that there remains strong investor appetite for rental property among younger landlords.”

He further noted: “There has also been a strong increase in the proportion of landlords in their 20s and 30s purchasing property, and these landlords will be the portfolio landlords of the future. With forecast growth in the population of 10% and significant demographic changes, it’s vital we increase the stock of rental homes to keep pace with demand. These landlords need a stable fiscal and regulatory environment to encourage continued investment into the sector.”

In summary, the buy-to-let market is seeing a generational shift, with younger investors playing a more prominent role and shaping the future of rental property investment.