Rely research finds next-gen landlords will hold 62% of buy-to-let positions within a decade
New research from Rely, the specialist buy-to-let lender from OSB Group, signals a coming overhaul of the UK landlord population. The Next Gen Landlords study finds Millennials and Generation Z on course to hold 62% of UK landlord positions within a decade.
Today, Baby Boomers and Generation X account for 54% of the market. That share is projected to fall to 37% by the mid-2030s.
Millennials alone are expected to hold 44% of buy-to-let positions. Gen Z will account for a further 18%.
How are next-generation buy-to-let landlords entering the market?
More than a third of aspiring next-generation landlords – 36% – expect to inherit a property and rent it out. A further 21% expect to receive capital through inheritance and use it to fund a purchase.
That marks a clear departure from today’s market, where personal savings are the dominant entry route. Early client conversations will need to cover estate planning and tax structuring, not just product selection.
The incoming landlord base is also becoming more diverse. Ethnic minority representation is projected to more than double, from 11% to 23%. Female landlords are expected to rise from 36% to 42%.
Brokers who have served a narrower client profile will need to adapt to a much more diverse demographic.
Buy-to-let succession planning and the long-term landlord relationship
The next-generation buy-to-let landlord is expected to enter with a smaller portfolio and build incrementally. Hold periods will be longer, and succession intent is high from the outset.
Half of future landlords plan to pass property to family on exit, up from 42% today.
The quality of advice received at the point of entry is likely to define the entire broker relationship. That has direct implications for how intermediaries structure their services. Case complexity will grow as clients combine inherited assets with new borrowing.
The ability to advise across personal names, limited companies, and mixed ownership structures becomes a genuine differentiator. The rise of portfolio landlords points to a similar conclusion: the advice requirement has already moved beyond straightforward product placement.
What do next-gen buy-to-let landlords want from their broker?
Jon Hall, group chief commercial officer at OSB Group, said the shift calls for a different kind of broker conversation.
“The landlords entering the market over the next decade won’t necessarily look like the ones brokers have worked with over the last twenty years,” Hall said. “More will be coming into the sector through inheritance, many will start with smaller portfolios, and they’ll often be looking at property as a long-term family asset rather than simply an investment.”
In Hall’s view, brokers will need to guide clients through decisions that are personal from the start. That could mean financing an inherited asset, entering the market for the first time, or planning long-term portfolio growth.
“Technology has an important role to play in making lending quicker and easier, but it can’t replace the judgement, experience and conversations that help brokers navigate more complex cases – it needs to complement it,” Hall said.
The research also highlights a values shift among incoming landlords. Some 82% of current landlords describe their tenant relationships as positive. And 55% say they are already spending more time thinking about the tenant experience.
The Rely research makes clear that returns are not the only consideration for next-gen buy-to-let landlords. Brokers and lenders who reflect that in their approach will be ready for the generational shift ahead.
