Nearly 400,000 company directors under the age of 28 are now running UK-registered businesses, with a significant number involved in property investment. This trend highlights how many younger entrepreneurs are choosing to rent their own homes while investing in property elsewhere to let, reflecting a strategic approach to entering the property market amid high house prices.

Rising Numbers of Gen Z Entrepreneurs

Analysis of Companies House data by Hiscox reveals that in 2025 there are 393,531 active Generation Z directors. This represents an average annual growth rate of 78%, with new entrants continuing to establish companies across various sectors, including property.

Hiscox’s business insurance platform identifies that 4.7% of these Gen Z-run businesses are involved in ‘Other letting and operating of own or leased real estate’. These companies typically acquire and hold property assets, generating income through rental payments.

Renting in Cities, Buying to Let Elsewhere

Robin Edwards, a property buying agent at Curetons, explains the rationale behind this approach: “High property prices continue to make personal homeownership difficult, so many Gen Z investors see property investment as a different way to enter the market.”

He adds, “Often these Gen Z investors rent and work in cities like London where it’s expensive to buy, so instead they invest in other regions of the UK with much cheaper property prices that offer better yields and more potential for capital growth.” This strategy allows younger investors to build a property portfolio while managing living costs in high-priced urban areas.

Gen Z’s Growing Influence in Business

Nick Thornhill, direct and partnerships director at Hiscox, comments on the broader significance of this trend: “The meteoric rise of Gen Z entrepreneurs shows that the next generation is taking an active involvement in business – they’re turning bold ideas into business ventures and taking on influential roles.”

This surge in young directors signals a shift in the business landscape, with Generation Z increasingly shaping the future of enterprise and investment, particularly in the property sector.

London as a Hub for Growth

Hiscox data shows that the number of Gen Z company directors has risen from almost zero in 2012–2013 to more than 97,000 by 2023–2024. Although the partial year to November 2024 recorded 56,853 directors—a slight decrease from the previous period—it remains significantly higher than earlier years.

London accounts for 21% of Gen Z-run companies, including those involved in property. However, growth is not confined to the capital. Belfast has seen a 180% increase in director appointments over five years, followed by Bradford at 148%, and Bolton, where the number has doubled.

What this means for landlords

The rise of Generation Z as property investors and company directors presents new opportunities and challenges for landlords and agents. With younger investors targeting regions outside expensive urban centres, there may be increased demand for buy-to-let properties in areas offering higher yields and growth potential.

Landlords should be aware of this shifting dynamic, as it could influence rental markets and investment patterns across the UK. Understanding the motivations and strategies of Gen Z investors can help landlords and agents better anticipate market trends and tailor their services accordingly.

Source: Based on reporting from Property118

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TLA update

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