A third of UK adults still aspire to own a buy-to-let property despite widespread commentary on the sector’s decline, a new survey has revealed.
Research commissioned by Market Financial Solutions and conducted by Opinium among a nationally representative sample of 2,000 adults found that 33% of respondents want to own a buy-to-let property in the future.
The ambition is strongest among younger adults, with 54% of those aged 18 to 34 expressing interest in becoming landlords, compared to just 14% of those aged 55 and over.
The findings suggest enduring confidence in property as a wealth-building strategy. 60% of respondents said they view property investment as an effective means of generating long-term wealth, while 37% stated they would prefer to invest in bricks and mortar than in stocks and shares. More than half (53%) agreed that real estate is a safe and stable asset.
This affinity for property is further reflected in hypothetical scenarios. When asked how they would use a £1 million lottery win, 58% of respondents said they would invest some or all of it in property. Among the 18 to 34 age group, this figure rose to 68%.
However, the survey also exposed underlying frustrations among younger people. A majority (57%) of respondents in the 18 to 34 bracket said they resent how much more difficult it is to invest in buy-to-let today than it was for previous generations, citing rising house prices as a major barrier.
Paresh Raja, chief executive of Market Financial Solutions, said the data challenges the prevailing narrative that buy-to-let is falling out of favour.
“It has become popular over the past decade to bash buy-to-let investing as being increasingly unappealing. Clearly, however, that is far from the case,” Raja said. “The rise in house prices and borrowing costs, coupled with tighter rules and regulation in the rental market, has undoubtedly caused challenges for both current and prospective landlords.
“I am sure this will have given some people reason to question whether buy-to-let ownership is the right route for them, but these survey results underline the love affair that the UK has with bricks and mortar.”
He added that hopes of falling mortgage rates could pave the way for a new wave of first-time landlords. “Many people aspire to homeownership and property investment. The stability of the market, along with the opportunity for the value of the asset to rise in the longer term alongside a rental income, all contribute to this. Indeed, if buy-to-let mortgage rates do come down in the coming months as expected, we may well see more first-time landlords entering the market.”
