Date Published 24 October 2025
It seems the next generation of property investors is well and truly stepping up!
Recent figures show that millennials – those aged roughly 29 to 44 – now make up around half of all new landlords setting up buy-to-let companies.
That's a huge jump compared with a few years ago, with the number of new limited companies being created for buy-to-let purposes expected to more than double since 2020.
In other words, younger landlords are entering the market with confidence and a more business-minded approach than ever before.
Why the shift?
There's been a steady move towards landlords running their rentals through limited companies, rather than holding them personally. The main reason is tax: company profits are subject to corporation tax (currently between 19% and 25%), rather than the higher rates of income tax (40% or 45%) that affect many individual landlords.
Before 2017, landlords could offset their mortgage interest payments from rental income to reduce their tax bill, but when that option was phased out, many started looking for smarter ways to make their numbers stack up – and forming a limited company became the go-to route.
Where are these new landlords investing?
Interestingly, the North of England and parts of Scotland are leading the charge when it comes to buy-to-let investment. Lower stamp duty costs, more affordable property prices, and stronger rental yields are all major attractions.
Cities such as Sunderland, Aberdeen and Burnley are currently topping the charts with average gross yields of over 8%, and in some areas of the North East, more than a quarter of homes sold recently went to landlords.
In contrast, parts of London and the South have seen a real slowdown in landlord activity – only around a third of investor purchases now happen in these regions, down from half less than a decade ago.
A new type of landlord
Another fascinating trend is how younger generations are overtaking Baby Boomers when it comes to setting up new portfolios. Gen Z (those in their 20s) are beginning to make their presence felt too. Many are taking a fresh, digitally savvy approach – using tech to manage properties, track performance, and connect with tenants more easily.
Older landlords, meanwhile, are increasingly focused on estate planning and winding down portfolios, creating room for this new wave of investors to step in.
What it means for the rental market
The message is clear: the rental market isn't shrinking – it's evolving. A new, younger breed of landlord is building wealth through property, often taking a more professional and long-term approach.
Despite higher mortgage rates and tighter regulations, property remains one of the most trusted and stable ways to invest in the UK, especially when managed well and set up properly from the start.
Thinking about becoming a landlord?
If you're considering starting or expanding your own buy-to-let portfolio, Lewis Dean Letting can help you every step of the way – from setting up your first rental to finding great long-term tenants and achieving strong returns.
We've been helping local landlords across Poole and the surrounding areas for over 30 years, so whether you're a first-time investor or just looking to modernise your approach, we'd love to chat.
👉 Visit www.lewisdean.co.uk
or pop in for a friendly, no-obligation chat.
