For the first time ever, millennials are now leading in buy-to-let investment in England and Wales, despite being less likely to own their own home.
This is according to a new report by Hamptons, which identified a generational shift in the demographics of buy-to-let landlords in England and Wales.
It said that despite tax rises and tighter regulations making the buy-to-let market a more challenging landscape, the rise of younger investors has helped to sustain landlord purchases.
While millennials are less likely than older generations to own their own homes, Hamptons said this age group now accounts for half of shareholders in buy-to-let limited companies set up so far this year.
This is the first year when millennials have accounted for new shareholders in half of buy-to-let companies, with Gen X following behind at 33%.
This generational shift indicates that Baby Boomers are now likely to be winding down their portfolios or passing them on to the next generation.
Across the country, landlords now account for 11.3% of purchases, a slight increase from the same time last year. However, landlord purchases are particularly concentrated in the South of England.
However, these purchases are increasingly concentrated outside the South of England. While London, the South East, South West and East of England accounted for half of purchases in 2016, they now only account for 34% of investor purchases.
The North East is the most significant hotspot for buy-to-let investors, with more than triple the London average of landlord purchases.
Hamptons found that rental growth has slowed compared to the same point last year, driven largely by a significant slowdown in growth in London, with rents declining by 2.7% in the capital.
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