Research by the lender revealed that nearly 26 per cent of new investors who owned one BTL property were aged between 26 and 35. 16 per cent of all BTL investors with up to three properties were also within this age demographic, compared to 14 per cent six months ago.
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John Heron, managing director at Mortgage Trust, said: “Traditionally BTL has been perceived as something for the more mature investor. However, recently we have been witnessing an increase in the number of younger professionals choosing to make a considered and long-term investment in property.”
Mortgage Trust also revealed that the average investor expected to hold on to their initial investment property for 11 years. 25 per cent of respondents stated their top motivation for purchasing BTL property was to fund their retirement.
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Heron added: “We are seeing a new generation of young people who are preparing for the future by making long-term financial plans. New landlords are looking at an investment that will see them safe for the long term – possibly even into retirement. They are choosing BTL because, at a future point, they can either sell the properties, netting a lump sum; or hold on to the investments and continue to benefit from a regular income that can supplement other forms of pension provision.”
Justin Wiggins, IFA at Helinton Financial Services, said: “There are many investors of this age who have moved on from one or two bed properties to buy something bigger.”
