Yes. A new generation of landlords could significantly reshape the UK’s private rented sector over the next decade, with Millennials and Gen Z expected to make up a much larger share of landlords. As the landlord population changes, so could attitudes towards technology, tenant relationships, professionalism and property management.
Research from Rely, part of the OSB Group, surveyed 1,509 current and future landlords about how the private rented sector could evolve over the next 10 years. It forecasts that Millennials could account for 44% of landlords, while Gen Z could make up a further 18%.
A New Generation Is Entering Property
The UK’s landlord population could look very different within the next decade.
Boomers and Gen X currently account for around 54% of landlords, but this is expected to fall to approximately 37% as younger generations become a larger part of the market.
This doesn't necessarily mean that older landlords will disappear. Instead, the sector is likely to experience a gradual shift as existing landlords retire, pass properties to family members or sell their portfolios, while younger investors enter the market.
For the PRS, this could mean a change not only in who owns rental property, but also in how those properties are managed.
Inheritance Could Become a Bigger Route Into Landlording
For many younger landlords, becoming a property owner may not start with buying their first investment property.
According to the research, one in three future landlords expect to inherit a property that they could let. Meanwhile, 21% expect to inherit money that could be used to invest in property.
A further 13% of future landlords expect to take on an existing portfolio of four or more properties.
This could create a new generation of landlords who inherit established property businesses rather than building portfolios entirely from scratch.
But taking over a property doesn't automatically mean taking over a well-organised operation.
New landlords may need to understand everything from tenancy information and compliance requirements to rent collection, maintenance and portfolio performance.
Tenant Experience Could Become More Important
The research also points towards changing attitudes among landlords.
Separate Landlord Leaders research cited by Property118 found that 82% of existing landlords describe their relationship with tenants as positive. More than half, 55%, said they are spending more time considering the tenant experience, while 59% had spoken directly with tenants to better understand their needs.
This suggests that professionalism in the PRS may increasingly involve more than simply collecting rent and maintaining a property.
Clear communication, responsive maintenance and organised tenancy management can all contribute to a better landlord-tenant relationship.
For younger landlords who are more comfortable using digital tools, technology could play a bigger role in delivering that experience.
Technology Could Become Part of Professional Landlording
As the landlord population changes, so could expectations around how property businesses are managed.
Keeping information across spreadsheets, emails, paper documents and different platforms can become increasingly difficult as a portfolio grows.
A more organised approach can give landlords a clearer picture of:
For a new generation entering the sector, digital property management may become less of an optional extra and more of an expected part of running a professional portfolio.
A More Diverse PRS
The research also forecasts a broader shift in the makeup of the landlord population.
Ethnic minority representation among landlords is expected to increase from 11% to 23%, while the proportion of female landlords is forecast to rise from 36% to 42% over the next decade.
The result could be a landlord population that increasingly reflects the wider population of the UK.
That diversity may also bring different investment strategies, experiences and approaches to managing tenants and properties.
What Does This Mean for Landlords?
The biggest change may not simply be the age of landlords.
It could be the expectation that being a landlord should be treated more like a professional property business.
As regulation becomes more complex and portfolios become increasingly data-driven, landlords need reliable systems for keeping track of what is happening across their properties.
Younger landlords entering the market may have an opportunity to build those systems into their portfolios from the beginning.
Existing landlords can benefit from doing the same.
The Future of Landlording Is Becoming More Professional
The research suggests the private rented sector isn't disappearing. Instead, its landlord base is changing.
Younger generations are expected to take a larger role, inheritance could bring more people into property ownership, and tenant experience is becoming an increasingly important consideration.
For landlords, the opportunity is to adapt alongside the market.
The future landlord may not simply be someone who owns property. They may be someone who runs a professional, organised and technology-enabled property business.
How Propell Can Help
Propell gives landlords a central place to manage property information, compliance, lettings and portfolio performance.
Whether you're building a portfolio, taking over inherited properties or managing an established rental business, having the right information in one place can make it easier to stay organized and make informed decisions.
Manage your portfolio with confidence.
Stay organized. Stay informed. Stay ahead.
Frequently Asked Questions
1. Are younger people becoming landlords?
Research cited by Property118 suggests that younger generations could make up a significantly larger proportion of UK landlords over the next decade, with Millennials forecast at 44% and Gen Z at 18%.
2. How are younger people expected to enter the private rental sector?
Inheritance could be an important route. One in three future landlords surveyed said they expect to inherit a property they could let, while 21% expect to inherit money to invest.
3. Why is professional property management becoming more important?
As landlords manage more complex compliance requirements, tenancy information and property data, having organised systems can make it easier to monitor a portfolio and respond to issues before they become bigger problems.
