Millennials and Gen Z are set to account for 62 percent of UK landlords within a decade, while the combined share of Baby Boomers and Generation X falls from 54 percent to 37 percent, according to new research from Rely, part of OSB Group.
The specialist buy-to-let lender said its Next Gen Landlords study of 1,509 current and potential landlords, alongside 10 in-depth interviews, points to a younger and more diverse group entering the sector. It forecasts Millennials will make up 44 percent of landlords and Gen Z 18 percent.
Inheritance is likely to shape more of the next generation’s first decisions as owners. Rely found 36 percent of future landlords expect to inherit a property they can let, compared with 27 percent of current landlords who say that was their route in. A further 21 percent expect to inherit capital for a rental purchase.
Inheritance changes the buy-to-let entry route
The finding does not mean every inherited home becomes a rental. It does suggest more new landlords may begin with a property, capital or an existing family portfolio, rather than buying their first investment from savings. That can bring immediate choices about probate, tax, ownership structure, finance and whether the home is suitable to let.
Rely said future landlords are also more likely to pass property on again: 50 percent expect to leave it to family when they exit, compared with 42 percent of current landlords. That long-hold intention is important for brokers and lenders, but it is also a warning against treating an inherited property as a simple windfall. The costs, compliance duties and tenancy decisions begin as soon as it is let.
This follows Landlord Knowledge’s March report that over-60s held 55 percent of UK housing wealth. Rely’s figures give one possible picture of how some of that wealth could enter the private rented sector, although they are survey-based expectations rather than a forecast of the total number of homes that will be let.
Smaller portfolios, longer holds
The lender said the incoming cohort is expected to start with smaller portfolios and build more gradually than the landlords it replaces. Its research also projects ethnic minority representation among landlords rising from 11 percent to 23 percent, while the share of female landlords rises from 36 percent to 42 percent.
Jon Hall, Group Chief Commercial Officer at OSB Group, said more landlords would enter through inheritance and often see property as a long-term family asset rather than only an investment. He said that would make specialist advice more valuable where clients are financing an inherited home, buying a first rental or deciding how to grow a portfolio.
Ownership choices will not be uniform. Landlord Knowledge reported in August that company ownership had passed 50 percent in larger buy-to-let portfolios, but a newly inherited single property raises a different set of questions. Personal ownership, a company transfer and a sale can all have different tax, mortgage and legal consequences.
Rely’s Next Gen Landlords research is a useful prompt for landlords thinking about succession. It is not evidence that younger owners will automatically increase rental supply: a property may be sold, occupied by family or kept empty while decisions are made. The immediate landlord task is to get advice before a tenancy, finance application or ownership change locks in a route that is hard to reverse.
What this means for landlords
- If you may inherit a rental home: get tax, legal and mortgage advice before changing the ownership or starting a tenancy.
- If you are planning succession: record the property, finance and compliance position clearly so family members are not starting from scratch.
- Watch for: whether a smaller first portfolio can meet lender stress tests and the costs of bringing an inherited home up to letting standard.
- Bottom line: inheritance may bring more people into buy-to-let, but it does not remove the need for a considered ownership and finance plan.
Editor’s view
Inheritance can move someone into the landlord role quickly, often before they have chosen it. That makes early, independent advice more useful than a rush to let or transfer a property. The next generation may change the profile of the sector, but the practical risks of ownership remain familiar.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 8 September 2026
Sources: Rely / OSB Group Next Gen Landlords research
Related reading: Lendlord says company BTL ownership passes 50% in larger portfolios
