"For BTL investors, understanding first-time buyer behaviour is no longer optional; it’s essential. Gen Z may enter the market later or through non-traditional routes, but they remain the primary buyers of entry-level flats, which underpin much of the rental sector."
- Simon Cairnes - Buy Association
While many are just beginning their buying journey, first-time buyers, particularly from Gen Z, are shaping the market from the bottom up. Their choices affect buy-to-let investors, especially in the flat sector.
Simon Cairnes, property expert at BuyAssociation, explains how financial pressures, lifestyle preferences, and changing expectations are creating a new era of shared ownership and modern communal living, and why investors must understand these trends when assessing demand, rental viability, and long-term resale potential.
A generation looking beyond traditional ownership
“Gen Z are more open-minded than any generation before them when it comes to property. Rather than waiting years to buy alone, they’re teaming up with friends or siblings to get onto the ladder sooner. Co-buying is no longer niche, it’s a smart workaround for high deposits and rising rent, and we’re seeing growing numbers explore models that split both cost and responsibility," said Cairnes.
“Gen Z value flexibility, mobility, and financial security. They’re less tied to the old idea that ownership has to be a solo journey, and are far more interested in finding practical ways to build wealth earlier."
He added, “For buy-to-let investors, this is important because co-buyers are increasingly replacing the traditional solo first-time buyer, particularly when it comes to flats. This helps maintain demand at the entry level of the market.”
Co-living: community meets convenience
“Co-living developments are becoming a major draw for younger renters, offering fully serviced apartments, shared social spaces, and short, flexible leases."
“Co-living resonates with Gen Z because it blends independence with community. These developments offer everything from coworking lounges to gyms, rooftop terraces, and curated events; it’s a lifestyle as much as a living arrangement."
“When rent includes amenities, social spaces, and services you’d otherwise pay for separately, co-living makes financial sense. It supports their work-from-anywhere lifestyle and provides a built-in social network, which is increasingly important for young professionals relocating to new cities."
“For investors, this signals where rental demand is heading. Flats that offer shared amenities, strong locations, and a sense of community are more likely to see consistent tenant demand and lower void periods.”
What this means for buy-to-let investors
Cairnes noted, “For BTL investors, understanding first-time buyer behaviour is no longer optional; it’s essential. Gen Z may enter the market later or through non-traditional routes, but they remain the primary buyers of entry-level flats, which underpin much of the rental sector."
“Their willingness to co-buy, rent flexibly, and prioritise lifestyle-driven locations directly influences rental demand, yields, and resale liquidity."
“Investors who align their portfolios with what younger renters and future first-time buyers want, well-located flats, strong amenities, and adaptable living spaces, are better positioned to maintain occupancy today and secure smoother exits tomorrow.”
Creative models for an unstable market
“Affordability pressures have pushed Gen Z to think creatively about ownership. Joint mortgages, fractional ownership models, and flexible rental structures are giving them more routes into the market than ever before. Instead of being priced out, they’re finding alternative paths to build equity and take their first step into property investment.
“Developers and lenders are waking up to the fact that Gen Z don’t want one rigid model. They want options that reflect how they actually live, collaborative, mobile, and digitally connected. These models also help sustain market activity, which benefits buy-to-let investors by supporting demand and price stability at the lower end of the market.”
Redefining what home really means
Cairnes concluded, “The biggest change is cultural. For Gen Z, property isn’t just a long-term financial milestone; it’s a lifestyle choice. They want spaces that offer community, flexibility, and a better blend between work and home life.
“We’re seeing increased demand for properties with communal areas, shared amenities, and adaptable layouts. Gen Z are telling the market loud and clear: home isn’t just the walls you own, it’s the environment you’re a part of.
“For buy-to-let investors, aligning with these expectations can make the difference between a flat that struggles and one that remains attractive to both renters and future first-time buyers when it comes to the time to sell.”
