The average age of landlords acquiring new rental property with a buy-to-let mortgage has fallen over the past decade, research from Paragon Bank has revealed.
The research found the average age of buy-to-let landlords acquiring new property with a mortgage fell from 46.4 years of age in 2014 to 42.9 last year.
Paragon Bank attributed this to “strong growth” in the proportion of landlords in their 30s – 31 per cent last year compared to 21 per cent in 2014.
Paragon Bank managing director of mortgages, Richard Rowntree, said: “There is a perception that buy-to-let landlords are an aging group, but the majority of new purchases are concentrated in landlords under the age of 50.
“This group accounted for nearly three quarters of all buy-to-let purchases last year, highlighting that there remains strong investor appetite for rental property among younger landlords.
“There has also been a strong increase in the proportion of landlords in their 20s and 30s purchasing property and these landlords will be the portfolio landlords of the future.
“With forecast growth in the population of 10 per cent and significant demographic changes, it’s vital we increase the stock of rental homes to keep pace with demand.
“These landlords need a stable fiscal and regulatory environment to encourage continued investment into the sector.”
Additionally, Paragon found that, while the proportion of landlords acquiring new property in their 40s remained consistent over the period, there was a “pronounced fall” in their proportion of landlords in their 50s and 60s acquiring new properties.
It detailed that those in their 50s accounted for 29 per cent of purchases in 2014, falling to 20 per cent last year, with landlords in their 60s decreasing from 10 per cent to 6 per cent.
An inverse of this trend was seen among landlords aged between 18 and 29, who accounted for 6 per cent of purchases in 2014 but rose to 10 per cent last year.
Conversely, separate research from Paragon showed that aspirational future portfolio landlords were predominantly in their 30s.
The analysis was contained in Paragon’s report ‘Next Generation Landlord Report’ which examined the aspirations of landlords with one to three properties who have intentions to expand.
tom.dunstan@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
