A PropTech firm claims that introducing National Insurance on rental income would give older landlords a tax advantage.

A wave of older landlords may reshape the buy-to-let sector if National Insurance is levied on rental income, a move expected in the upcoming Budget. He firm warns that pension-age investors—exempt from NI—would gain a tax advantage, potentially outpacing younger entrants. Chancellor Rachel Reeves is said to be exploring the measure to help close the fiscal gap.

A spokesperson for the PropTech company, says: “While younger landlords are reshaping the market, agencies should not underestimate the resilience and value of older investors.

“If National Insurance is levied on all rental income but the current exemption for those over State Pension age holds, these investors could see higher net yields than their younger counterparts, making property investment more attractive to retirees.”

He states this is a “a valuable opportunity for agents

 “Older portfolio landlords who rely on experienced agents to professionally manage their properties can trust those agents to guide them in investing beyond their local area in areas that deliver strong rental yield.”

Recent data from a South East based agency reveals a sharp increase in property purchases by younger investors. This year, 75% of shareholders in newly formed property investment firms are aged 50 or under—up from 68% ten years ago. Millennials, born between 1981 and 1996, are expected to launch 33,395 buy-to-let companies in 2025, marking a 142% rise compared to 2020.

The firm believes that “This signals a generational shift in landlord demographics.”