Young People Prioritising Buy-to-Let Over Homeownership: The Smart Financial Move
- Mortgage Tree
- Apr 15
- 4 min read
New insight from estate agency John Minnis shows a shift in property buying patterns among 25- to 34-year-olds, with a growing number investing in buy-to-let properties as a wealth-building strategy instead of purchasing homes to live in.
The trend is attributed to increased financial awareness, high deposit requirements for residential mortgages, and the continued attractiveness of property as a long-term investment.
John Minnis says the agency is seeing an increasing number of younger clients purchasing second properties with the intent to let them out rather than using them as a primary residence.
"Many young people now view property investment as a much more viable financial strategy than homeownership," said John Minnis, founder and company director at the firm.
"The younger generation looking to get into the property market is all to do with wealth building and financial security. In a time of increasing economic uncertainty and inflation, young people are seeking alternative ways to build wealth beyond traditional savings accounts and investments. Purchasing a second property allows them to leverage real estate as a long-term asset," he said.
A September 2024 report from Paragon Bank supports this trend, showing that landlords in their 30s made up 31% of all new buy-to-let mortgage holders in 2023, up from 21% in 2014. The number of under-21 landlords also rose, with over 3,000 recorded, and a further 63,000 aged 21–30. Millennials between 31 and 40 now account for an increasingly large share of investment property owners.
"In today's economic climate, many young people are turning to property investment as a strategic means to build wealth and secure financial stability," Minnis added.
"They recognise that investing in real estate not only offers potential appreciation over time but also provides a source of passive income through rentals. This approach allows them to enter the property market earlier, leveraging their investments to eventually acquire their own homes with greater financial confidence."
Why Young Investors Are Making This Shift
This growing trend represents a significant shift in how young people approach property ownership. Rather than following the traditional path of buying a home to live in first, many are instead choosing to:
Build passive income streams through rental yields while continuing to rent themselves in areas that suit their lifestyle
Take advantage of mortgage interest tax relief still available on buy-to-let properties
Diversify their investment portfolios beyond stocks and savings
Access the property market in more affordable areas rather than being limited to where they need to live for work
Use rental income to help fund deposits for eventual personal homeownership
How Mortgage Tree Specializes in Supporting Young Property Investors
At Mortgage Tree, we understand this evolving market and have developed specialized services designed specifically for young investors looking to build wealth through property investment:
Tailored Buy-to-Let Mortgage Solutions
Our team of expert brokers specializes in finding competitive buy-to-let mortgage products suitable for first-time investors. We have access to exclusive deals with lower deposit requirements that aren't available directly from high street lenders, making the entry point more accessible for younger clients.
Investment Property Analysis
Our comprehensive property investment analysis service helps clients identify areas with strong rental demand and growth potential. We provide detailed breakdowns of expected yields, potential capital appreciation, and ongoing costs to ensure investments align with clients' financial goals.
First-Time Landlord Support Package
Unlike other brokerages, Mortgage Tree offers a complete support package for first-time landlords that includes:
Guidance on legal requirements and regulations
Connection with trusted property management services
Landlord insurance options comparison
Tax planning advice in partnership with specialist accountants
Regular portfolio reviews to maximize returns
Long-Term Investment Strategy
We don't just arrange mortgages—we build long-term relationships with our clients. Our advisers work with young investors to develop multi-year property investment strategies that can grow with them, potentially leading to portfolio expansion or eventual transition to their dream home.
Case Study: From Renter to Property Investor
Emma, 29, approached Mortgage Tree last year while still renting in London. Rather than stretching for a small flat in the capital, our advisers helped her secure a buy-to-let mortgage on a two-bedroom house in Manchester with just a 20% deposit. The property now generates £650 monthly rental income after costs, providing her with both immediate returns and long-term capital growth potential.
"Mortgage Tree completely changed my perspective on getting onto the property ladder," says Emma. "Instead of spending everything on a tiny flat to live in, I'm building equity in an investment property while having the flexibility to live where suits my career."
For young people considering investment properties as their entry point to the property market, Mortgage Tree offers free initial consultations to discuss options and develop a personalized investment strategy. Contact our specialist buy-to-let team today to discover how property investment could be your path to financial freedom.
Mortgage Tree is authorized and regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on your mortgage.
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