Over 3,000 buy to let landlords in the UK are under 21

Publication featured in Landlord Today and Landlord Zone.

More than 3,000 buy-to-let landlords in the UK are under the age of 21, collectively earning more than £66 million in rental income.

Gen Z landlords are the latest cohort to invest in buy-to-let property, joining over 2.6 million other UK buy-to-let landlords. Property’s record as a stable investment compared to more volatile investments such as stocks and shares has made it an attractive option for UK private investors.

Gen X and Baby Boomers remain largest landlord age cohorts

The number of landlords in the UK aged 65 and over has increased significantly. There are now 696,000 landlords in this age group, up 20% from 582,000 in 2018. Despite the overall number of landlords falling by 1.7% to 2.7 million, the 65+ cohort now earns over 27% of all income earned from UK rental properties – equivalent to £11.5 billion last year.

The 51-60 age group remains the largest segment of landlords, with 723,000 individuals declaring income from property. In total, 1.67 million landlords in the UK are aged above 51, representing 63% of all landlords.

Neela Chauhan, partner in our London office, says “The large number of under-21 landlords show that the newest generation not only sees the value of investing in property – but also investing early.”

“Buy-to-let investments have been hit by a number of negative tax changes in recent years. However, with such a large number of investors in the UK now basing their retirement income partly on buy-to-let property, we hope the new government won’t undermine the sector.”

The total income received from rental properties across the UK reached £41.4 billion in 2022, up from £40.2 billion in 2021. This highlights the continued strength of the rental property market.

Neela claims that “The tax code has become increasingly complex in recent years, and this is especially true for rental income. Proper financial planning is critical to managing rental income effectively and avoiding costly fines from the taxman.”

Many landlords, especially pensioners earning over the annual threshold of £12,570, may not be fully aware of their tax obligations. we recommend those who fall into this category to seek advice to ensure they pay whatever tax is due. 

Please get in touch with Neela Chauhan or your usual UHY adviser to discuss further.

Number of buy-to-let landlords broken down by age and the total value of property income 2022/2023