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Category: first time landlords

An analysis of industry data by Paragon Bank has indicated that, on average, UK buy to let landlords are getting younger.

There are many possible reasons, though survey results from Landlord Today may be telling. In any case, this trend marks a hopeful sign for the future of the Private Rented Sector (PRS). 

Paragon calculated that the age of landlords purchasing properties with buy to let mortgages has decreased quite substantially from 46.4 in 2014 to 42.9 in 2023.

This age reduction has been primarily driven by the increasing numbers of landlords in their thirties deciding to purchase properties. 

Why are younger landlords entering the PRS?

Considering that there is currently uncertainty within the PRS and many experienced landlords are deciding to sell their properties, what could be attracting so many budding landlords to the sector? There are many possible explanations. 

Labour have not made their position on the social housing sector especially clear, but many have inferred that it will not receive a huge amount of funding. 

The onus may then fall on PRS landlords to offer high quality housing to individuals and families, proving that the private sector is extremely valuable for the UK economy – and attractive for younger landlords to invest in. 

According to a survey conducted by Landlord Today, the younger respondents – which included many first-time landlords hoping to build fuller portfolios – said that they are drawn to the “tangible nature” of properties. 

This means that even for younger investors living in an increasingly digital world, the prospect of something real and physical that will stand the test of time is more appealing than pixels on a screen. With a brick-and-mortar property, you have a much clearer idea of what you are spending money on.

As we have recently covered, complex properties like Multi-Unit Freehold Blocks (MUFBs) are in high demand among landlords, younger ones included. That said, standard buy to let properties still form the bedrock.

It’s important for first-time landlords to feel encouraged to enter the PRS. We have several case studies about new and inexperienced landlords that show it is very possible for them to find success – with valuable help from some friendly and knowledgeable mortgage brokers.