Growing numbers of young people in the UK now prefer to invest in rental properties than buy their own home.
An unprecedented number are sinking their earnings, working capital and inheritance in property due to an increased awareness of wealth-building and wealth management, according to John Minnis (pictured), founder of John Minnis Estate Agents.
Many young people now view property investment as a much more viable financial strategy than homeownership due to high deposit requirements and mortgage rates, says Minnis.
“We’re seeing a distinct shift in the landlord demographic - more young professionals in their 20s and early 30s are choosing to buy a second property to rent out rather than purchasing a home for themselves,” he reports.
“They view property as a strategic investment rather than a lifestyle decision. This rise of the young landlord is reshaping the private rental landscape.”
A recent report from Paragon Bank points to a fall in the average age of buy-to-let landlords, driven by growth in the proportion of those in their 30s. In 2023, 31% of new buy-to-let mortgages were acquired by 30-somethings compared to 21% in 2014, while landlords aged 18-29 also saw a rise in their share of purchases.
Minnis reckons Belfast is one of the top five property investment hotspots in the UK and says yields in the city’s metropolitan area remain among the highest in the UK.
It should offer the strongest potential returns for both new and seasoned landlords, predicts Minnis, who adds that Manchester, Bristol, Leeds and Bangor & North Down are also set for the strongest property investment in 2025/2026 for those eyeing strong returns, long-term tenant demand, and capital growth.
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