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Older landlords are handing a buy-to-let legacy to younger investors, according to a new study.
As over-50 landlords sell up and move on to enjoy their profits, a new generation is taking over.
A recent survey by Market Financial Solutions (MFA) asked 2,000 people if they believed property investment was still a viable alternative to a pension for building long-term wealth, and two out of three (60 per cent) agreed.
More than one in three (37 per cent) voiced a preference for investing in property rather than sinking savings into stocks and shares, and more than half (53 per cent) agreed that property was a safe and stable investment.
MFS CEO Paresh Raja says the common view is that the government bashing buy-to-let for more than a decade has made property investment unappealing to a new generation of investors -- but that seems far from the case.
"The rise in house prices and borrowing costs, coupled with tighter rules and regulations in the rental market, has undoubtedly caused challenges for both current and prospective landlords," he said.
"I'm sure this will have given some people reason to question whether buy-to-let is right for them, but the survey results underline the love affair that the UK has with bricks and mortar.
"The stability of the market, along with the opportunity for the value of the asset to rise in the longer term alongside a rental income, all contribute to this. Indeed, if buy-to-let mortgage rates do come down in the coming months as expected, we may well see more first-time landlords entering the market."
Interestingly, the survey also revealed that 68 per cent of 18 to 34-year-olds would invest some or all of a £1 million lottery win in buy-to-let property.
A separate poll by estate agency John Minnis confirmed similar results.
The firm has seen a surge of young professionals aged 20 to 40 years old investing in buy-to-let properties rather than buying a home.
"Many young people now view property investment as a much more viable financial strategy than homeownership due to high deposit requirements and mortgage rates," said John 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.
"They view property as a strategic investment rather than a lifestyle decision. This rise of the young landlord is reshaping the private rental landscape."
Another study by specialist buy-to-let lender Paragon Bank also showed that the average age of borrowers is dropping. In 2023, 31 per cent of new buy-to-let mortgages were taken by 30-somethings compared to 21 per cent in 2014, while the share of purchases has risen for landlords aged 18-29.