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Young People Prioritising Buy-to-Let Over Homeownership: The Smart Financial Move

  • Writer: Mortgage Tree
    Mortgage Tree
  • Apr 15
  • 4 min read
BTL Investments are on the rise for younger buyers
BTL Investments are on the rise for younger buyers

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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Mortgage Tree offers a nationwide mortgage broking service from our base near York, North Yorkshire. We specialise in mortgages and insurance. Whether you are a first time buyer or you are a buy to let investor with multiple properties, Mortgage Tree will ensure that you get the most suitable products available.

We are a Whole Of Market broker which means that we will choose the most suitable mortgage for you from the hundreds available on the UK mortgage market. Our network also gets specially discounted deals from lenders which are available to our network.

 

We also provide insurance cover that will give you & your loved ones a blanket of protection that is so vital. We will endeavour to give you the best service that we can at all times.

Jason Gentles t/a Mortgage Tree  (FCA No. 502275) is an appointed representative of Julian Harris Mortgages Ltd (FCA No. 304155), which is authorised and regulated by the Financial Conduct Authority.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

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