Millennial landlords comprised a record 50 per cent of new buy-to-let investors in England and Wales in the year to date, new data shows.

Three-quarters of shareholders in new buy-to-let businesses this year were born between 1981 and 1996, up from 68 per cent a decade ago according to the estate agent Hamptons. 

While people are more likely to have the means and desire to own a buy-to-let as they get older, Hamptons described the rise of younger landlords as 'striking'.  

In 2016, just 24 per cent of those signing up to become new buy-to-let landlords through a limited company were millennials, rising to 40 per cent by 2020. 

Aneisha Beveridge, head of research at Hamptons, said: Beveridge said: 'Millennials - many of whom have struggled to buy their own home - are now leading the charge in buy-to-let.

'It's clear that a new generation is finding alternative ways to build wealth through bricks and mortar.'

The estate agent estimates millennials will set up 33,395 new buy-to-let companies this year, around 142 per cent higher than the number incorporated among this age category in 2020. 

This coincides with a rise in landlords owning property in a company structure in general. 

Landlords can choose to own properties in their own personal name, or through a limited company. The latter has become more popular in recent years because it can mean landlords pay less tax in certain circumstances.  

Generation X, born between 1965 and 1980, comprised 33 per cent of new shareholders in buy-to-let limited companies this year, compared to 7 per cent in the Baby Boomer age group born between 1946 and 1964, Hamptons said.

Ten per cent of new buy-to-let landlords this year were born between 1997 and 2012 and are Generation Z. 

Chris Norris, chief policy officer at the National Residential Landlords Association, told the Daily Mail: 'Often people of all ages enter the rental market for a variety of reasons, with many becoming what we’d call "accidental landlords". 

'In some cases younger landlords may have inherited properties and who have let them out as rental properties, whilst others are committed to building a steady portfolio of rented homes.'

He added: 'Millennials are also often at their peak in terms of their career earnings, and in many cases will follow the example of previous generations by making the same investments.

According to Hamptons' findings, the rise of younger investors has 'helped sustain landlord purchases', even as tax hikes and tighter regulations have made the buy-to-let market increasingly challenging.

Some landlords are reported to be trying to sell properties ahead of the upcoming Renters' Rights Bill, which is set to become law in early 2026, as this will put tighter restrictions on their ability to evict tenants and raise rents.

Experts had warned that this would lead to a dearth of properties, which could trigger higher rents. However, now it appears many are struggling to sell, and are having to limit rent rises in order to keep their tenants.

Which locations are new landlords honing in on?

Buy-to-let landlords hunting for value for money and decent returns are steering clear of the south of England, according to Hamptons. 

London, the south east, south west and east of England accounted for just 34 per cent of buy-to-let purchases across England and Wales in the third quarter of this year. In 2016 these regions accounted for 50 per cent of purchases, it said.  

In London, landlords snapped up 8 per cent of homes sold in the third quarter of this year, the lowest figure since the same point in 2020.     

Landlords were similarly 'small players' in the south west of England, accounting for 8.1 per cent of property purchases in the quarter. In the east of England, the proportion of buy-to-let purchases in the third quarter was 8.2 per cent. 

Across London, the south west and east of England, 52 per cent of estate agents did not sell a single home to a landlord in the third quarter of this year.  

By contrast, the north east of England remains a hotspot for investors, with landlords accounting for 28.4 per cent of purchases during the quarter, more than triple the London average. 

According to Hamptons, the share of homes bought by investors in the north east has exceeded 20 per cent in nine of the last decade. 

Hamptons said: 'This reflects lower property prices, which have partially sheltered investors from the impact of the SDLT surcharge, alongside higher yield.' 

Overall, the share of homes purchased by landlords has remained unchanged from last year, Hamptons said, despite higher charges for stamp duty on second homes. 

Hamptons' analysis suggests the average rent for a newly let home across Britain fell by 0.3 per cent in the year to September 2025, down £4 per month from £1,402 to £1,398. Average rents in London fell 2.7 per cent, or £65. 

A year earlier, national growth of 4.2 per cent was recorded.