Millennials and Gen Z are expected to account for 62% of UK landlords within the next decade, up from a minority today, according to new research.

The study from specialist buy-to-let lender Rely and demographic consultancy Trajectory found that Baby Boomers and Generation X currently make up 54% of landlords, but this is forecast to fall to 37% within ten years, while Millennials are expected to represent 44% and Gen Z 18%.

The research also points to a more diverse landlord base, with ethnic minority representation projected to rise from 11% to 23% and female landlords from 36% to 42%.

Inheritance is expected to become a major route into the market, with 36% of aspiring landlords expecting to inherit a property they can rent out, compared with 27% of current landlords. A further 21% expect to inherit capital to buy a rental property.

Future landlords are also expected to start with smaller portfolios and hold properties for longer, with 50% planning to pass their properties to family when they eventually exit, compared with 42% of current landlords. Rely said this will increase demand for advice covering inheritance, financing, ownership structures and long-term succession planning.

For brokers, these trends has practical implications. Case complexity will increase as inheritance and borrowing are combined; the importance of whole-of-life client relationships grows; and the ability to advise across different ownership structures, personal names, limited companies, mixed portfolios, becomes more valuable.

Jon Hall, group chief commercial officer at OSB Group, said: "The landlords entering the market over the next decade won’t necessarily look like the ones brokers have worked with over the last 20 years. More will be coming into the sector through inheritance, many will start with smaller portfolios, and they’ll often be looking at property as a long-term family asset rather than simply an investment.

"That changes the conversations brokers should be having with clients. As those journeys become more personal, the value of specialist advice only grows. Technology has an important role to play in making lending quicker and easier, but it can’t replace the judgement, experience and conversations that help brokers navigate more complex cases, it needs to complement it."

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