Landlord demographic shift
- Published: Tuesday 01 June, 2021
- By: Commercial Trust
New data released this week shows that landlords are getting younger, and at the same time, closing the gender gap.
The average age of British landlords has decreased according to property firm Knight Knox.
Their data highlights that 47% of landlords are now under the age of 40.
This is a dramatic shift when compared with data from three years ago, where Landlords under the age of 44 only made up 29%.
The Knight Knox data also went on to discuss rental income. Their data shows that the youngest landlord demographic in their survey, are making the most profit.
Of the 500 private landlords that they surveyed, those aged between 18 and 30 generated an average income of £25,481 a year.
This younger demographic also appeared more optimistic about the PRS.
Over 50% of the under 30s were ‘very confident’ about what 2021 had to offer, compared to just 15% of over 50s who said the same.
Andy Phillips, Commercial Director, from Knight Knox says:
“Landlords in the UK are getting younger and they’re more willing to invest in the market in order to grow their portfolios quickly. It’s really quite remarkable to find that almost half of British landlords are aged under 40 and shows that property investment isn’t exclusively for the elite.
“In 2018, 50 per cent of landlords were aged over 55. Our latest research shows that this has declined to just 26 per cent being aged 51 or over. The face of modern landlords in the UK is changing and it’s the younger generation which is seeing the greatest opportunity.”
Landlord gender gap
At the same time, it appears that another demographic of landlords is also experiencing change.
Yieldit, a service which buys and sells properties with tenants in situ, has suggested that women have caught up to men and now account for almost half (49%) of British landlords.
This is a 9% increase from 2018, when women accounted for 40% of landlords.
Martin Copeland, director of YieldIt says:
“It’s really encouraging to see more women taking steps to become private landlords and closing the gender gap in this sector.
“Being a private landlord was once considered to mostly be the realm of older middle class men, but our research has shown that landlord demographics are changing fast.
“Forty-nine per cent of the 500 landlords we spoke to were women, owning an average of two properties each.”
This change in landlord demographics shows how buy to let can work for almost anyone.
It will be interesting to see how these statistics change in another year’s time.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.