Millennials are set to become Britain’s largest group of landlords over the next decade as a major generational transfer of property and wealth reshapes the private rented sector.
Research from Rely, part of OSB Group, forecasts Millennials will account for 44% of landlords within 10 years, with Gen Z representing a further 18%.
By comparison, the combined proportion of Baby Boomer and Gen X landlords is expected to fall from 54% today to 37%.
The findings are based on research conducted with strategic insight consultancy Trajectory among 1,509 existing and prospective landlords.
INHERITANCE EFFECT
Inheritance is expected to play a significant role in the changing landlord population.
More than a third – 36% – of prospective landlords expect to inherit a property which they can rent out, compared with 27% of existing landlords who entered the market through this route.
A further 21% expect to inherit money which could be invested in property, while 13% anticipate inheriting an existing portfolio of four or more homes.
Future landlords also appear more likely to view property as a long-term family asset, with 50% planning to pass property to relatives when they eventually exit the market compared with 42% of current landlords.
CHANGING LANDLORD PROFILE
The research also forecasts a more diverse landlord population. Ethnic minority representation is expected to increase from 11% to 23%, while the proportion of female landlords is forecast to rise from 36% to 42%.
Jon Hall (main picture), Group Chief Commercial Officer at OSB Group, says: “Our new research makes one thing very clear: the private rented sector is not disappearing, it’s transforming.
“A younger, more diverse and more tenant-focused generation is taking over, changing what it means to be a landlord in Britain.”
The research also points to improving sentiment among existing landlords, with 62% now optimistic about operating in the sector, up from 47% last year.
Hall adds: “The picture that emerges is one of pragmatic optimism – a private rented sector that better reflects the country it serves, where landlord and tenant relationships are built on trust, and where professionalism is the norm rather than the exception.”
