Inheritance boom may increase number of UK landlords

A significant transfer of intergenerational wealth could lead to an increase in the number of landlords in the United Kingdom. Research from the Resolution Foundation indicates that 2.1 million adults received inheritances between 2018 and 2020, an increase from 1.7 million during the 2008–2010 period. Notably, approximately 670,000 of these recipients received sums of £50,000 or more.

John Minnis, founder of John Minnis estate agents, suggests that for existing homeowners, these substantial inheritances provide diverse financial options, including mortgage reduction, stock market investment, or purchasing rental properties. He notes that even a small percentage of these recipients entering the buy-to-let market could result in thousands of new investors.

HMRC research highlights that 40% of current landlords entered the market through inheritance, gifts, or existing homes, while 60% purchased property specifically as an investment. Intergenerational wealth transfers are projected to double over the next two decades.