The buy-to-let market is undergoing a generational shift. Our analysis of industry data shows a clear trend: landlords are getting younger. The average age of those purchasing property with a buy-to-let mortgage has dropped from 46.4 in 2014 to 42.9 last year. This is a significant change.

We’re seeing a surge in interest from younger investors. The proportion of landlords in their 30s has climbed from 21% to 31% over the past decade, while those aged 18 to 29 now account for a tenth of purchases. This is a testament to the enduring appeal of property as an investment, even in an era of diverse asset classes.

Buy-to-let has often been a target for criticism, but it’s undeniable that it has been a success story for both the financial services industry and the UK economy. As we approach the 30th anniversary of this product, it’s clear that it remains a vital component of our housing market. With £300bn in balances and two million outstanding loans, it’s a mature and substantial sector.

However, the changing demographics of landlords bring new opportunities and challenges. As the original wave of buy-to-let investors reach retirement age, we’re seeing a growing number of younger landlords stepping up.

Our research of 500 landlords with aspirations to develop property portfolios indicates that these new entrants are drawn to property for its tangible nature, the long-term demand for rental accommodation, and its potential as a pension supplement.

The findings, included in our new Next Generation Landlord Report, also present opportunities for intermediaries.

While many of these landlords currently own simple properties – flats and terraced houses are common – their aspirations are more complex. There’s a growing appetite for investments like houses in multiple occupation and multi-unit blocks. This shift requires a higher level of expertise from mortgage brokers.

Furthermore, the way landlords manage their finances is evolving. Despite the rise of limited company ownership, we’re surprised to find that many of those landlords we surveyed hold property in their personal name. This suggests a significant opportunity for brokers to advise on the benefits of limited companies, especially given the potential capital gains tax implications under a Labour government.

This new generation of landlords has high expectations. They are digital natives who demand efficient, online services. The mortgage industry must adapt to meet these needs. Paragon is committed to this transformation, and we’re excited to unveil our new digital platform later this year.

It’s an exciting time for the buy-to-let sector. With a new generation of landlords emerging, we have a chance to shape the future of the private rented sector.

Richard Rowntree is Managing Director of Mortgages at Paragon Bank.