A Paragon Bank analysis of UK Finance data revealed the average age of BTL landlords buying new property declined from 46.4 years old in 2014 to 42.9 years old last year
The average age of landlords buying new rental properties has dropped in the past 10 years, and those in their 30s seek to expand their portfolios, according to an analysis from a lender.
A Paragon Bank analysis of UK Finance data revealed the average age of BTL landlords buying new property declined from 46.4 years old in 2014 to 42.9 years old last year.
This has been fuelled by an increase in the share of purchases made by landlords in their 30s.
In 2014, 21% of rental property purchases with a buy-to-let mortgage were made by a landlord in their 30s, compared to 31% last year.
Paragon Bank’s Next Generation Landlord Report found that the proportion of landlords in their 40s acquiring new properties stayed consistent over the decade, dropping marginally from 34% in 2014 to 32% in 2023.
There was a marked drop in the share of landlords in their 50s and 60s purchasing a new property over the period. In 2014, 29% of rental property purchases were made by people in their 50s, and this declined to a fifth last year. The share of landlords in their 60s making new rental acquisitions dropped from 10% to 6%.
Conversely, there was an increase in the purchases made by landlords aged between 18 and 29, which rose from 6% of acquisitions in 2014 to 10% last year.
The average age of landlords with up to three properties who wanted to become portfolio landlords was 37.8 years old. Meanwhile, landlords aged between 25 and 34 made up the highest share of respondents at 35%, followed by those aged between 35 and 44 accounting for 31%.
Richard Rowntree, MD of mortgages at Paragon Bank, said: There is a perception that BTL landlords are an ageing group, but the majority of new purchases are concentrated in landlords who are below the age of 50.
This group accounted for almost three-quarters of all BTL purchases last year, highlighting that there remains strong investor appetite for rental property among younger landlords.
