Generational shift reshapes the buy-to-let landscape
A notable generational shift is underway in England and Wales’ buy-to-let market. New analysis of Companies House data by Hamptons reveals that millennials—people born between 1981 and 1996—now account for half of all new buy-to-let investors. This marks a striking change from five years ago, when millennials made up about 40% of new buy-to-let shareholders. The trend underscores how younger investors are stepping into property ownership roles even as affordability challenges persist for broader homeownership.
What the data say about millennials and new buy-to-let ventures
For the first time this year, millennials constituted 50% of all new shareholders in buy-to-let companies set up so far. Across the age spectrum, three-quarters of shareholders in new companies are under 50, up from 68% a decade ago. While tax rises and tighter regulations have driven some landlords to scale back, the influx of younger investors is sustaining activity in the market and supporting new purchases despite a tougher operating environment for buy-to-let.
As a broader measure, the share of homes bought by landlords across England and Wales remained broadly steady compared with the previous year, even as the second home stamp duty surcharge rose to 5% in April from 3%. Hamptons estimates that millennial landlords will create about 33,395 new buy-to-let companies this year—more than double the number incorporated in 2020—indicating sustained growth driven by younger generations.
Regional shifts: northward movement and changing hotspots
The geographic distribution of investor purchases is shifting. Traditionally hot regions like London and parts of the south have seen a relative slowdown, with the combined share of the south and London accounting for 34% of investor purchases in the July-to-September quarter, compared with about half in 2016. Investors are increasingly looking north for higher yields and lower stamp duty costs.
In London, rents and demand have cooled, with the north drawing more attention. Data show that more than a quarter (28.4%) of homes sold in the north-east were bought by a landlord, in stark contrast to just 8% in London. The trend suggests a rebalancing within the English housing market, as investors seek markets with potentially better returns and more affordable entry points.
Rental trends: softer rents but renewed contract growth
Amid this shift in ownership, the rental market has experienced a nuanced change. The average rent for a newly let home in Britain declined by 0.3% year-on-year to September, slipping from £1,402 to £1,398. This marks a reversal from the 4.2% annual rent growth seen a year earlier and is largely driven by softness in London, where rents fell 2.7% month-to-month, and by a sharper 4.6% drop in inner London averages to £2,766 per month. That level remains £165 below the October 2024 peak.
Contrast this with renewed contract rents, which rose by 4.6% over the past 12 months, outpacing inflation and reflecting landlord strategies to optimize returns from existing portfolios even as new acquisitions slow in certain regions.
Implications for landlords, borrowers, and policy
The rise of millennial landlords may have several implications. For borrowers, the data suggests a generational turnover in who is funding and managing rental portfolios, potentially bringing different attitudes toward risk, leverage, and property management. For policymakers, the findings highlight the continuing tension between housing affordability for first-time buyers and the demand channel provided by buy-to-let investors, including the impact of stamp duties and regulatory changes on investment flows.
Another facet of the generational shift is the visible decline in baby boomer-led new incorporations, with Gen Z-led entities beginning to outpace them for the first time. The evolving landscape signals that the next wave of property investment could be increasingly youth-driven, potentially reshaping landlord practices, tenant experiences, and regional property markets in the coming years.
Bottom line: a market in transition
The convergence of stronger millennial participation, regional diversification, and shifting rent dynamics points to a market in transition. While rents have cooled in some segments, the persistence of new buy-to-let activity—especially among millennials—suggests that private rental housing will remain a central feature of the housing ecosystem in England and Wales. As investors recalibrate portfolios amid regulatory changes, the market could continue to see a more balanced distribution of property purchases across the north and south, with a continued emphasis on yields and affordability for renters.
About the data
Hamptons analyzed Companies House data to illuminate trends in buy-to-let company incorporations and investor demographics. The findings reflect registrations and ownership changes through 2025 and provide insight into how generations are reshaping landlord activity in the UK.
