An inheritance boom could lead to a new generation of landlords as wealth passes between generations, according to John Minnis estate agents. The firm suggests that for homeowners receiving a substantial sum, buying a property to let could become one of their financial options.
This perspective is supported by Resolution Foundation research, which indicates that approximately 670,000 adults received inheritances worth at least £50,000 during the 2018–2020 period. The agency's founder, John Minnis, anticipates that inherited wealth could facilitate more individuals entering the lettings market over the coming decade.
Mr Minnis noted that property wealth accumulated over decades is expected to transfer between generations on a much greater scale. He stated that receiving £50,000, £100,000, or more can create a different set of financial choices for someone who already owns their home, including reducing their mortgage, investing in stocks, or saving. He believes buying a property to rent out will be a popular choice among these options.
The Resolution Foundation research also found that 2.1 million adults received an inheritance between 2018 and 2020, an increase from 1.7 million between 2008 and 2010. The proportion receiving at least £50,000 rose from 25% to 32% in these periods. However, the agency acknowledges that an inheritance does not automatically result in property investment.
Mr Minnis expects those using inherited wealth, alongside accidental landlords, to account for a larger share of Britain's lettings market. Separate research by his agency suggests future landlords are increasingly likely to enter the market earlier and view property as part of a wider investment portfolio. They are also reportedly willing to buy beyond their local area, targeting locations with strong tenant demand, regeneration opportunities, and prospects for long-term growth, often building portfolios across different locations and property types.