Younger Brits turn to buy-to-let

Younger Britons are increasingly moving into buy-to-let, a new report claims.

While the activity has traditionally been associated with more mature investors, almost 26 per cent of new landlords who own just one buy-to-let property are aged between 26 and 35, the figures reveal.

The report found that this age group represents 16 per cent of all buy-to-let investors with up to three properties, up from 14 per cent six months ago.

Around 25 per cent of respondents said that their main aim in buying a rental property was so that it could serve as a retirement fund, with the average investor expecting to hold onto their first investment property for almost 11 years.

John Heron, managing director of the Mortgage Trust, which produced the report, said that a new generation of young people were preparing for the future by making long-term financial plans.

He said: "New landlords are looking at an investment that will see them safe for the long term - possibly even into retirement.

"They are choosing buy-to-let 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 stream that can supplement other forms of pension provision."

Research from Self-Catering-Breaks.com found that half of Britons who own second homes have invested in property overseas in order to help fund their retirement.

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