According to research by online buy-to-let estate agent Yieldit, the average age of buy-to-let purchasers has droppedsince 2014.
The average age has reduced from 52.3 years to 42 years in 2018. This age drop is found in both the residential and the student accommodation sectors. The student buy-to-let sector age drop is less, down from 52.3 years in 2014 to 44.2 years in 2018. This compares to the residential market decrease from 57.5 years in 2014 to 40.9 years in the residential market.
There is a belief that but to let investors are mainly older people, many retirees, but these figures contradict this view.
Ryan Hughes, Yieldit’s head of sales commented:
“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…The figures just go to show that the classic portrait of a landlord is changing.”
There is a rising tenant demand, and this has led to an increase in house prices. Good rental yields and capital growth are possible depending on the location of the property. There are many first-time landlords entering the buy-to-let market, and lenders have commercial mortgage deals targeted at these buyers.
There has been a decrease in the number of buy-to-let mortgage applications in 2018, but Riyan Highes if confident that the many younger people entering the market will revitalize and strengthen the buy-to-let sector.