Many people still see property investment as the reserve of the older generation, but the average age of a typical buy-to-let investor has fallen dramatically.
While today’s younger people might seem more inclined to invest in emerging markets such as cryptocurrency, it seems the tried-and-tested method of traditional property investment is actually attracting a younger crowd, too.
New research from online agency Yieldit has discovered that the average age of buy-to-let investors has fallen by around 10 years since 2014, from 52.3 to 42, despite the average age of first-time buyers rising in recent years as property prices have soared in the UK.
The figures also show a split between straightforward residential and student lets, with a significant drop in the typical age of a residential buy-to-let property buyer from 57.5 in 2014 to 40.9 now, while student rentals are being bought by people of an average age of 44.2 now compared to 52.3 in 2014.
Winds of change
Ryan Hughes, head of sales at Yieldit, believes the research shows that there is “a wind of change blowing through the market” as younger investors with the means to do so are choosing property investment to make long-term returns.
He added: “Investing in bricks and mortar is as popular as ever and although a small number of our buyers are owner-occupiers, the majority are property investors looking for tenanted buy-to-let.
“Rising tenant demand and record house prices continue to attract a broadening number of people to the market, including a burgeoning number of first-time investors.”
Younger people finding better prices
Earlier this year, it emerged that older people are dominating the UK’s property market, with three quarters of the country’s housing wealth being owned by over-50s. However, while the older generations may possess the highest priced property due to huge capital appreciation over the years, investment property tends to be bought at a lower price point in order to generate the best returns, which could explain the trends being seen in Yieldit’s research towards a younger demographic.
Young professionals are also increasingly being attracted to more affordable parts of the UK, with a huge rise in migration towards the north and the Midlands away from pricier areas such as London and the south-east. With the possibility of getting more for your money, as well as better long-term returns when starting at a lower price point, the property investment market is being opened up to a wider demographic for those looking in the right areas.
