Gen Z are rushing to invest in buy-to-let property, with more than 3,000 buy-to-let landlords in the UK now under the age of 21.

According to accountancy group UHY Hacker Young, these youthful investors collectively earnt more than £66 million in rental income during 2022/2023, with property’s record as a stable investment making it an attractive option for budding private investors.

Its research found that the number of landlords aged 65 and over has increased significantly, with 696,000 in this age group, up 20% from 582,000 in 2018. Pensioners now earn 27% of all income made from UK rental properties – equivalent to £11.5 billion last year.

Largest segment

The 51-60 age group remains the largest segment of landlords, with 723,000 individuals declaring income from property. In total, 1.67 million landlords in the UK are aged above 51, representing 63% of all landlords.

Neela Chauhan (pictured), partner at UHY Hacker Young, says the large number of young landlords shows that the newest generation not only sees the value of investing in property, but also investing early.

“Buy-to- investments have been hit by a number of negative tax changes in recent years,” she says. “However, with such a large number of investors in the UK now basing their retirement income partly on buy-to-ley property we hope the new government won’t undermine the sector.”

The total income received from rental properties across the UK reached £41.4 billion in 2022, up from £40.2 billion in 2021.

UHY Hacker Young warn that many landlords, especially pensioners earning over the annual threshold of £12,570, may not be fully aware of their tax obligations and should seek advice to ensure they pay what they owe.

Adds Chauhan: “The tax code has become increasingly complex in recent years, and this is especially true for rental income.”