New insight from estate agency John Minnis shows a shift in property buying patterns among 25- to 34-year-olds, with a growing number investing in buy-to-let properties as a wealth-building strategy instead of purchasing homes to live in.
The trend is attributed to increased financial awareness, high deposit requirements for residential mortgages, and the continued attractiveness of property as a long-term investment.
John Minnis says the agency is seeing an increasing number of younger clients purchasing second properties with the intent to let them out rather than using them as a primary residence.
“Many young people now view property investment as a much more viable financial strategy than homeownership,” said John Minnis, founder and company director at the firm.
“The younger generation looking to get into the property market is all to do with wealth building and financial security. In a time of increasing economic uncertainty and inflation, young people are seeking alternative ways to build wealth beyond traditional savings accounts and investments. Purchasing a second property allows them to leverage real estate as a long-term asset,” he said
A September 2024 report from Paragon Bank supports this trend, showing that landlords in their 30s made up 31% of all new buy-to-let mortgage holders in 2023, up from 21% in 2014. The number of under-21 landlords also rose, with over 3,000 recorded, and a further 63,000 aged 21–30. Millennials between 31 and 40 now account for an increasingly large share of investment property owners.
“In today’s economic climate, many young people are turning to property investment as a strategic means to build wealth and secure financial stability,” Minnis added.
“They recognise that investing in real estate not only offers potential appreciation over time but also provides a source of passive income through rentals. This approach allows them to enter the property market earlier, leveraging their investments to eventually acquire their own homes with greater financial confidence.”
