Part 1: Inheritance, not acquisition: how tomorrow’s landlords may enter the market

Adrian Moloney, Group Lending Distribution Director, Rely

For decades, the typical buy to let journey followed a familiar path. Investors purchased a property, built equity, generated rental income and gradually expanded their portfolios over time.

Rely’s Next Gen Landlords research suggests the next generation may enter the market very differently.

More than a third of aspiring landlords expect to inherit property that can be rented out, while others anticipate inheriting capital to support a purchase or taking ownership of an existing rental business. At the same time, half expect to pass property on to family members when they eventually leave the sector.

These findings suggest the future landlord market may be shaped as much by inheritance as acquisition, with property playing a growing role in family wealth planning. Rather than spending years acquiring assets, many future landlords may begin their journey with significant responsibility already in place.

This has important implications for brokers. Someone inheriting a rental property or portfolio often faces decisions around ownership structures, taxation, financing and long-term strategy from day one. Questions that might once have arisen years into a landlord’s journey could become immediate priorities.

Advice is also likely to play a different role. Traditionally, many buy to let discussions centred around funding the next acquisition. Future conversations may focus just as much on how inherited assets should be structured, managed and developed over time.

As ownership journeys become more personal, understanding individual objectives becomes even more important. Two landlords may inherit similar assets but have very different ambitions. One may want to grow a portfolio, while another may prioritise income generation, succession planning or preserving family wealth.

As inheritance becomes a more common route into buy to let, brokers are likely to find themselves supporting clients at a much earlier stage of their ownership journey, helping them navigate decisions, because of things like inheritance tax, that extend well beyond property finance.

Key takeaways for brokers on landlord inheritance

• More than a third of aspiring next generation landlords expect to inherit rental property rather than purchase it themselves.

• Future landlord journeys may begin with decisions around ownership structures, taxation and long-term planning from day one.

• Brokers are likely to play a broader advisory role as inheritance and succession planning become more common themes in landlord conversations.

Download the full Next Gen Landlords playbook.