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Average age of landlord buyers falls over last decade

Average age of landlord buyers falls over last decade
Christina Hoghton
Written By:
Posted:
17/07/2024
Updated:
17/07/2024

The average age of buyers purchasing new buy-to-let (BTL) property has fallen, as 30-somethings target portfolio growth.

That’s according to research from Paragon Bank.

The BTL specialist lender said that, in 2014, 21% of purchases with a BTL mortgage were made by a landlord in their 30s, compared to 31% last year.

The average age of BTL landlords acquiring new property with a mortgage fell from 46.4 years of age in 2014 to 42.9 last year.

Fall in older landlords buying property

Paragon’s Next Generation Landlord Report showed that the proportion of landlords acquiring new property in their 40s remained consistent over the period, at 34% in 2014 vs 32% in 2023.

However, there was a pronounced fall in the proportion of landlords in their 50s and 60s acquiring new property.

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Landlords in their 50s accounted for 29% of purchases in 2014, falling to 20% last year, and landlords in their 60s fell from 10% to 6%.

Richard Rowntree, managing director of mortgages at Paragon Bank, said: “There is a perception that buy-to-let landlords are an aging group, but the majority of new purchases are concentrated in landlords who are 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.”

He added: “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.”