Millennials Now Half of New Buy-to-Let Investors

Published: 13 October 2025. The English Chronicle Desk. The English Chronicle Online.

A generational shift is underway in England and Wales’ buy-to-let market, with millennials now making up half of all new investors, according to a recent report. This marks a significant change in a sector traditionally dominated by older generations, despite the well-documented challenges younger adults face in entering the housing market.

Analysis of Companies House data by estate agent Hamptons shows that for the first time, millennials – those born between 1981 and 1996 – constitute 50% of shareholders in new buy-to-let companies formed this year. Five years ago, they accounted for just 40%. Overall, three-quarters of shareholders in newly established companies are under 50, up from 68% a decade ago.

The report highlights that, while tax rises and tighter regulations have led some landlords to exit the market, younger investors have helped sustain buy-to-let activity. The share of homes purchased by landlords across England and Wales remained largely unchanged from the previous year, despite the increase in the second home stamp duty surcharge from 3% to 5% in April 2025. Landlords now account for 11.3% of property purchases, slightly up from 11.2% a year earlier.

Hamptons estimates that millennials will establish 33,395 new buy-to-let companies this year alone – more than double the number incorporated in 2020.

Geographically, investor purchases are increasingly concentrated outside the south of England, where property prices and stamp duty costs are higher. In the July-to-September quarter, London, the south-east, south-west, and east of England accounted for just 34% of investor purchases, compared with 50% in 2016. Northern regions are now proving popular, with 28.4% of homes sold in the north-east bought by landlords, compared with just 8% in London.

Rents are also showing signs of a slowdown. The average rent for newly let homes across Britain fell by 0.3% in the year to September, dropping £4 per month from £1,402 to £1,398. London has driven much of this decline, with rents down 2.7% overall and inner London rents falling 4.6% to £2,766 per month, which is £165 below the October 2024 peak. However, rents for renewed contracts continue to rise, outpacing inflation with a 4.6% increase over the past year.

The buy-to-let sector has emerged as the largest single type of business in the UK in 2025, outpacing traditional small enterprises like fast-food takeaways and hairdressers. This reflects the generational handover taking place, as baby boomers, now in their 60s and 70s, scale back portfolios or pass them on, while Gen Z entrepreneurs aged 13 to 28 have overtaken boomers in setting up new companies for the first time this year.

The findings illustrate a profound shift in the UK’s property market, with younger investors playing an increasingly dominant role in shaping buy-to-let trends, and suggest that this generational change could influence both investment strategies and rental markets in the coming years.