The demand for privately rented property continues to outstrip supply, and this gap is expected to widen unless ongoing investment in the sector is sustained. Many of the early buy-to-let landlords are approaching retirement, so a new generation of landlords is essential to meet future rental needs.

Paragon Bank’s Next Generation Landlord Report surveyed 500 landlords with one to three properties and identified a cohort of younger, aspirational landlords who are keen to grow their portfolios. Key findings from the report include:

• The average age of these landlords is 37.8 years, with the highest concentration between 25 and 34 years old (35%).
• 77% are in full-time employment, and three-quarters are higher-rate taxpayers.
• Most are located in London and the South East (40%), though 12% are in the North West.
• 51% work in property-related fields, and many were influenced by family or friends with property businesses.

The report highlights the appeal of property investment as a tangible asset (67%) and the expectation of long-term rental demand (60%). Additionally, 53% view it as a supplement to their pensions. There is growing interest in more complex properties like HMOs (Houses in Multiple Occupation) and multi-unit blocks (MUBs). Current investment in HMOs is at 8%, expected to rise to 17%, while investment in MUBs is anticipated to increase from 14% to 26%.