Michael O’Brien, managing director of Home of Mortgages, said that, running both a mortgage brokerage and a lettings agency, it was still seeing investors registering their interest in the BTL market.
He said demand is steady and mostly from experienced landlords who understand the numbers and the long-term value.
“What is really dominating the conversations right now is succession, something we bring up with landlords regularly. Many landlords who started building portfolios in the late 1990s and early 2000s are of an age where they are now thinking about what comes next.
“Do they keep the properties or sell them? Should they restructure by selling to a limited company or fully incorporate? Or is it time to bring in the children and start planning properly for the future?” he said.
Landlord succession planning will include tax planning, legal document review and identifying a successor to manage the business. This will create a future strategy for the property portfolio after a landlord’s death or retirement.
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Research from the National Residential Landlords Association (NRLA) earlier this year found that more than a third of landlords have not considered future inheritance bills, with almost a tenth saying they will take no action on their estate and leave it to their heirs to sort out.
O’Brien said “there is a lot of interest in how to involve the next generation, whether that means full or partial transfers, or just starting the conversation”.
“Interestingly, many of the younger generation do not carry the same frustration with regulation. They never knew a time without Section 24 or licensing changes, so they tend to look at things more objectively.
“I believe this [is] where brokers can really add value. We are not just placing mortgages. We are helping clients plan for the future, often working alongside accountants to structure things correctly. BTL is not dying. It is changing hands. And there is opportunity in that for brokers who are paying attention,” he said.
In an interview with this publication, Paragon’s managing director of mortgages Louisa Sedgwick said it was seeing more landlords that have been with the firm for over 30 years and are looking to retire.
She said some may have succession planning in place and some may not, but as a lender, it was looking at how it could connect landlords who may want to sell with those who may want to grow their portfolio.
‘Education and knowledge is key’
Phil Daffern, head of lender relationships at Simplybiz Mortgages, agreed that figures suggest that landlords are getting younger, especially those that opt for a limited company structure.
Hamptons research from earlier this year indicates that there were more than 60,000 limited companies set up in 2024, with nearly 39,000 coming from landlords aged 45 and under. The average age of a landlord in the UK is estimated at 60.
“This shift is down to a behavioural change in older Gen Z and younger millennials seeing BTL as an investment and an alternative to other investments,” he said.
Daffern said that for anyone active in or considering the BTL market, “education and knowledge is key”.
“Leverage lender and provider business development managers (BDMs) to attend team meetings, even ask them to attend landlord forums if you are running these for your landlords.
“Read up on Renters’ Rights Bill and Energy Performance Certificate (EPC) changes that are proposed for landlords, as these will affect advice that is given and also keep your landlords safe.
“Finally, explore all opportunities in BTL from portfolio general insurance (GI) cover to semi-commercial and commercial BTL, asking your network or club for help,” he said.
