Millennials are making a career out of being a landlord, according to a new survey by Intus Lettings.
Surprisingly, almost half of 18 to 34-year-old landlords said that their primary source of income comes from renting out property, while only 21% of over-35s stated the same.
Hope McKendrick, lettings manager at Intus Lettings, said the potential for weighty returns is strong despite the rise of stamp duty and other setbacks to the private rented sector.
“With employment prospects remaining unstable among millennials, it seems many are turning to the tried-and-tested bricks and mortar option to generate living expenses,” she said.
McKendrick suggests that having rental returns from tenants, while the property generates value over time, makes the buy-to-let market a ‘two-fold money-maker’. This would enable millennials to have a fixed salary and a healthy lump sum when it’s time to sell.
She continued: “As investors look to protect their financial future, we expect more will turn to property as a viable solution.”
Some 34% of 18 to 34-year-olds are holding property in London, in contrast to just 15% of those aged 35 or over, suggesting that younger landlords are more likely to rent out a property in the capital.
Similarly, buying off-plan is a more popular venture among the younger age group. Half of under-35s have bought a property in this fashion, compared to 16% of over-35s.
“Luxury apartments are flying up in every major city in the UK, yet hungry investors are hesitant to wait until the build is complete to buy, as the savings when buying early can be considerable,” McKendrick added.
“As such, many landlords – particularly those who are young and adaptable to this property purchasing landscape – are buying off-plan in the knowledge of potentially significant returns further down the line.”