Millennials have overtaken older generations to become the dominant force behind new buy-to-let investment across England and Wales, according to new analysis from Hamptons.

For the first time, those born between 1981 and 1996 now account for half of all new shareholders in buy-to-let companies registered so far this year, signalling a major generational shift in landlord demographics.

Hamptons’ study of Companies House data shows Millennials are expected to set up a record 33,395 new buy-to-let firms in 2025 – more than double the number formed in 2020.

BOOMER DECLINE

By contrast, Baby Boomers, now largely in their sixties and seventies, account for just 7% of new incorporations. Many are instead scaling back or passing portfolios to younger family members. Generation X investors (born 1965–1980) make up around a third of new company founders, while Gen Z (born 1997–2012) represent 10% – overtaking Baby Boomers for the first time this year.

Hamptons said the figures highlight how younger investors, despite lower levels of homeownership, are finding alternative routes into property wealth through investment rather than occupation. 30 years after the launch of the first buy-to-let mortgage, the torch appears to have passed from Baby Boomers to Millennials.

Aneisha Beveridge, head of research at Hamptons, said: “Landlord purchases haven’t collapsed in the face of higher taxes and tighter regulation – but they have shifted.

“New landlords have increasingly become an endangered species in markets across southern England, where big stamp duty bills and flatlining prices have nudged investors northwards.

“But in places like the North East, landlord activity remains close to all-time highs, showing that the buy-to-let market is adapting rather than retreating.

“What’s striking is the rise of younger landlords. Millennials – many of whom have struggled to buy their own home – are now leading the charge in buy-to-let.

“30 years on from the invention of the buy-to-let mortgage, which kick-started investment by Baby Boomers, it’s clear that a new generation is finding alternative ways to build wealth through bricks and mortar.

“Despite the challenges, Millennials and Gen Z are showing a similar appetite for long-term property investment, which is helping to stabilise the market.”

INVESTMENT SHIFTS NORTH

While landlord purchases have held steady overall, their geographical spread has changed sharply. Hamptons’ analysis of Connells data shows landlords accounted for 11.3% of all property purchases across England and Wales in the third quarter of 2025, broadly unchanged from a year earlier despite the rise in the second-home stamp duty surcharge to 5% from 3%.

However, investment has become increasingly concentrated outside the South. London, the South East, South West and East of England together accounted for just 34% of all landlord purchases in Q3 – down from 50% in 2016.

In London, landlords bought only 8% of homes sold, the lowest share since 2020, while in the South West and East of England the figure was little higher at around 8%. In half of branches across these regions, not a single home was sold to a landlord during the quarter.

By contrast, the North East remains the country’s buy-to-let stronghold, where landlords made up 28.4% of all purchases – more than three times the proportion seen in London. The region has exceeded 20% investor activity in nine of the past 10 years, supported by lower prices and stronger yields which have softened the impact of higher stamp duty charges.

RENTAL GROWTH STALLS

Average rents for newly let homes across Great Britain fell by 0.3% in the year to September, down £4 to £1,398 a month. London drove the slowdown, with average rents in the capital falling by 2.7% – including a 4.6% drop in inner London, where typical rents are now £165 below their 2024 peak.

In contrast, rents for renewed tenancies continued to rise, increasing by 4.6% over the year to an average of £1,307 a month. Renewal rents have now risen nearly three times faster than those for new lets over the past two years, reflecting landlords’ desire to retain existing tenants amid higher costs and mortgage rates.

Beveridge added: “Rental growth remained negative in September, with tenants finding they have more room to negotiate than they’ve had during the last five years.

“While lower rents are always welcome news for tenants, there are still too many cost pressures facing landlords for a nominal fall in rents to turn into a more meaningful correction in the months ahead.”