Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Inheritance Set to Become Main Entry Route for Future UK Landlords

More than half of aspiring landlords in the UK expect to enter the private rental sector (PRS) through inheritance, according to a new report by buy-to-let lender Rely. The findings highlight a significant shift in how new landlords are likely to join the market, with implications for letting agents and inventory clerks.

Rely’s Next Generation Landlord Playbook surveyed over 1,500 current and prospective landlords. The report found that 36% of aspiring landlords expect to inherit property they could rent out, 21% anticipate inheriting money to buy a rental property, and 13% expect to inherit a property portfolio from a family member. In comparison, only 27% of current landlords said they became landlords by inheriting property, while 55% of future landlords expect to enter the market through inheritance.

Other routes into landlording remain relevant, with 27% of respondents saying they would use savings to purchase a rental property and 21% expecting to take out a buy-to-let mortgage.

The report also examined exit strategies among current landlords. Of those considering leaving the market, 42% said they would transfer their business or property to family, while 17% would sell to someone else. A quarter were unsure of their exit plan, and 5% planned to sell to investors.

Changing Demographics in the PRS

Rely’s report suggests that as baby boomer and Generation X landlords exit the sector, the new generation of landlords—primarily millennials and Gen Z—will bring greater diversity. The report states that the future landlord population will be more gender-balanced and ethnically diverse, with the share of female landlords predicted to rise from 36% to 42%, and landlords from ethnic minority backgrounds expected to increase from 11% to 23%. The report attributes this rise to a sharp increase in Black British and Indian ethnicities among future landlords.

The report also notes that future landlords are likely to be more purpose-driven, focusing on positive tenant experiences and community contribution, and are expected to operate professionally from the outset.

For letting agents and inventory clerks, these trends may signal changes in client expectations and property management practices as the sector evolves.