The share of houses purchased by a landlord remained unchanged from final 12 months, regardless of the rise in second residence stamp obligation surcharge, new figures have revealed.
Millennial landlords now account for a file 50% of shareholders in new buy-to-let restricted corporations arrange to date this 12 months. We estimate that they’ll arrange 33,395 new buy-to-let corporations in 2025 – greater than twice (+142%) the quantity included in 2020.
To this point this 12 months, 75% of shareholders in new corporations had been underneath the age of fifty – up from 68% a decade in the past.
Investor exercise is more and more concentrated within the North of England, the place yields are greater and stamp obligation prices are decrease. 28.4% of houses bought within the North East had been purchased by a landlord in Q3 2025, in comparison with 8.0% in London.
The common lease for a newly let residence in Nice Britain fell by 0.3% over the 12 months to September 2025, down £4 monthly.
Regardless of dealing with housing affordability challenges, Millennials (these born between 1981 and 1996) at the moment are main the cost in buy-to-let funding. For the primary time, in keeping with Hamptons evaluation of Corporations Home knowledge, they now account for half of all new shareholders in buy-to-let corporations throughout England & Wales (chart 1). This alerts a generational shift in landlord demographics. The rise of youthful buyers has helped maintain landlord purchases, at the same time as tax hikes and tighter rules have made the market tougher.
Hamptons’ evaluation of Connells knowledge* exhibits that the share of houses purchased by a landlord throughout England & Wales remained unchanged from the identical time final 12 months, regardless of a rise to the second residence stamp obligation surcharge. Landlords now pay a 5% SDLT surcharge (up from 3% pre-1 April 2025). Nationally, landlords accounted for 11.3% of purchases in Q3 2025, a slight enhance from 11.2% in Q3 2024 (11.2%) (chart 2).
Nonetheless, these purchases are more and more concentrated exterior the South of England. Collectively, London, the South East, South West and East of England accounted for simply 34% of investor purchases throughout England & Wales in Q3 2025. As just lately as 2016, these areas had accounted for 50% of purchases.
In London, landlords purchased 8.0% of houses bought in Q3 2025 – the bottom determine since Q3 2020. Landlords had been equally small gamers within the South West (8.1%) and East of England (8.2%) (desk 1). In reality, 52% of branches in these three areas didn’t promote a single residence to a landlord throughout Q3 2025.
In contrast, the North East stays the most important hotspot for buyers, with landlords accounting for 28.4% of purchases throughout Q3 2025 – greater than triple the London common (desk 1). The share of houses purchased by buyers within the North East has exceeded 20% in 9 of the final 10 years. This displays decrease property costs, which have partially sheltered buyers from the affect of the SDLT surcharge, alongside greater yields.
Desk 1 – Share of houses purchased by a landlord in Q3 2025 by area
| London | 8.0% |
| South East | 10.5% |
| South West | 8.1% |
| East of England | 8.2% |
| East Midlands | 15.4% |
| West Midlands | 13.1% |
| North East | 28.4% |
| North West | 13.3% |
| Yorkshire & Humber | 11.2% |
| Wales | 6.9% |
| England & Wales | 11.3% |
Supply: Hamptons
Based on Hamptons, landlord purchases are more and more being pushed by Millennial cash. Although Millennials – these born between 1981 and 1996 – are much less seemingly than older generations to personal their very own houses, they now account for half (50%) of shareholders in buy-to-let restricted corporations arrange to date in 2025.
The corporate estimates that, primarily based on present tendencies, Millennials will arrange a file 33,395 new buy-to-let corporations in 2025 – greater than twice (+142%) the quantity included in 2020 (chart 1). This enhance highlights their rising urge for food for property funding, regardless of many being priced out of homeownership.
That is the primary time Millennials have accounted for half of latest shareholders in buy-to-let corporations. 5 years in the past, they made up 40% of latest buy-to-let shareholders. The variety of new corporations arrange by Millennials has outpaced these led by Child Boomers (born 1946-1964) since 2017 and overtook Gen X-led (born 1965-1980) incorporations in 2022.
Shareholders in new buy-to-let restricted corporations by 12 months of incorporation:
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Silent
(Born pre-1945) |
2% | 1% | 1% | 1% | 1% | 1% | 0% | 0% | 0% | 0% |
| Child Boomers
(Born 1946-1964) |
25% | 22% | 18% | 16% | 13% | 12% | 11% | 9% | 8% | 7% |
| Technology X
(Born 1965-1980) |
47% | 47% | 46% | 43% | 43% | 43% | 40% | 36% | 35% | 33% |
| Millennials
(Born 1981-1996) |
24% | 29% | 33% | 38% | 40% | 40% | 44% | 47% | 49% | 50% |
| Gen Z
(Born 1997-2012) |
1% | 2% | 2% | 3% | 3% | 4% | 6% | 7% | 8% | 10% |
Supply: Hamptons & Corporations Home
Behind Millennials, Gen X accounted for 33% of latest shareholders in corporations arrange to date this 12 months, adopted by Gen Z with 10% (born 1997-2012) and Child Boomers (born 1946-1964) with simply 7% (desk 2).
This shift away from older generations displays that Child Boomers, now of their 60s and 70s, are much less more likely to be establishing new portfolios. As a substitute, they’re extra more likely to be winding them down or passing them on to the following era.
In the meantime, the variety of Gen Z-led corporations (as we speak aged between 13 and 28) overtook new incorporations from Child Boomers (aged between 61 and 79) for the primary time this 12 months. To this point this 12 months, 75% of shareholders in new corporations had been underneath the age of fifty – up from 68% a decade in the past.
The common lease for a newly let residence in Nice Britain fell by 0.3% over the 12 months to September 2025 – down £4 monthly from £1,402 to £1,398 This marks a notable shift from the 4.2% annual development recorded a 12 months earlier.
London drove the slowdown, right here rents fell by 2.7% or £65 monthly. In Interior London, rents declined by 4.6%, bringing the common to £2,766pcm, which is £165 under the October 2024 peak.
In distinction, rents for renewed contracts continued to rise, outpacing inflation, and rising by 4.6% over the previous 12 months. The common renewal lease now stands at £1,307 monthly, surpassing the £1,300 monthly mark for the primary time.
Whereas rental development for brand spanking new lets has turned unfavourable, the tempo of will increase for renewals has remained comparatively regular. In September 2024, renewal rents rose by 6.6%, in comparison with 4.6% in September this 12 months.
Over the previous two years, the price of renewing a tenancy has risen practically 3 times sooner than the price of shifting into a brand new property (11.5% vs 4.3%). For context, the common renewal lease handed £1,200 in April 2024, £1,100 in January 2023, and £1,000 in April 2021. It was again in March 2012 that renewal rents first exceeded £900 pcm.
Annual rental development by area – September 2025
| Area | New lets | Renewals | ||
| Common month-to-month lease | YoY % | Common month-to-month lease | YoY % | |
| Higher London | £2,332 | -2.7% | £2,292 | 4.1% |
| Interior London | £2,766 | -4.6% | £2,770 | 3.7% |
| Outer London | £2,013 | -0.7% | £1,888 | 4.6% |
| South | £1,368 | 1.0% | £1,275 | 4.1% |
| East of England | £1,227 | 1.2% | £1,237 | 5.9% |
| South East | £1,476 | 0.6% | £1,379 | 3.1% |
| South West | £1,294 | 1.4% | £1,155 | 4.1% |
| Midlands | £1,058 | 1.3% | £966 | 6.8% |
| East Midlands | £1,015 | 1.3% | £921 | 6.1% |
| West Midlands | £1,095 | 1.4% | £1,004 | 7.2% |
| North | £997 | 0.9% | £888 | 5.6% |
| North East | £928 | 2.1% | £766 | 7.3% |
| North West | £1,052 | 0.9% | £918 | 5.5% |
| Yorkshire & The Humber | £954 | 0.4% | £902 | 5.0% |
| Wales | £864 | -0.4% | £816 | 1.8% |
| Scotland | £1,076 | 2.2% | £876 | 5.0% |
| Nice Britain | £1,398 | -0.3% | £1,307 | 4.6% |
| Nice Britain (Exc London) | £1,159 | 1.0% | £1,063 | 4.9% |
Supply: Hamptons
Aneisha Beveridge, head of analysis at Hamptons, mentioned: “Landlord purchases haven’t collapsed within the face of upper taxes and tighter regulation – however they’ve shifted. New landlords have more and more change into an endangered species in markets throughout Southern England, the place large stamp obligation payments and flatlining costs have nudged buyers northwards. However in locations just like the North East, landlord exercise stays near all-time highs, exhibiting that the buy-to-let market is adapting somewhat than retreating.
“What’s placing is the rise of youthful landlords. Millennials – lots of whom have struggled to purchase their very own residence – at the moment are main the cost in buy-to-let. Thirty years on from the invention of the buy-to-let mortgage, which kick-started funding by Child Boomers, it’s clear {that a} new era is discovering other ways to construct wealth via bricks and mortar. Regardless of the challenges, Millennials and Gen Z are exhibiting the same urge for food for long-term property funding, which helps to stabilise the market.
“Rental development remained unfavourable in September, with tenants discovering they’ve extra room to barter than they’ve had over the past 5 years. Whereas decrease rents are at all times welcome information for tenants, there are nonetheless too many value pressures dealing with landlords for a nominal fall in rents to show right into a extra significant correction within the months forward.”
