Landlord culture attracts younger generation

Nearly 26% of new investors who own just one buy-to-let property are aged between 26 and 35, latest research from Mortgage Trust reveals.

This age group also makes up 16% of all buy-to-let investors with up to three properties, compared to 14% six months ago.

John Heron, managing director, says: Traditionally buy-to-let has been perceived as something for the more mature investor.

However, recently we have been witnessing an increase in the number of younger professionals choosing to make a considered and long term investment in property.

The average investor expects to hold on to their initial investment property for nearly 11 years and 25% of people stated that their primary motivation for purchasing rental property was so that it could serve as a retirement fund.

Heron added: We are seeing a new generation of young people who are preparing for the future by making long term financial plans.

New landlords are looking at an investment that will see them safe for the long term possibly even into retirement.

They are choosing buy-to-let because, at a future point, they can either sell the properties, netting a lump sum; or hold on to the investments and continue to benefit from a regular income stream that can supplement other forms of pension provision.