Millennials Buying Prime London Property: How Common Is It, and Can Specialist Finance Help?

Millennials appear to finally be an economic force to be reckoned with in the property market. For years, the prevailing message in the press and beyond was that millennials simply could not afford to get on the housing ladder in any context. But now, it’s coming to light that younger generations are embracing the BTL market at scale, let alone buying their first homes.

In fact, some millennials are buying prime London property, a feat thought by many to only be available to wealthy investors or older buyers. Millennials are quickly becoming the leading cohort in the BTL market, with those born between 1981 and 1996 set to be behind 50%[1] of all newly created BTL limited companies this year.

Where millennials are capable of substantial investments, London still seems to be holding appeal. Landlords at large bought 8% of all homes sold in the capital in Q3[2]. Meanwhile, the regions of London, the southeast, southwest and east of England combined accounted for 34% of investor purchases across England and Wales.

So, when it comes to prime assets, what is it that millennials may be after?

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What’s proving popular

With millennials buying prime London property, it’s worth exploring what actual types may prove tempting. Homeowners in the 28 to 43 age bracket are the most likely age-group to prioritise extra space, according to analysis from Barclays[3]. Just over a fifth (22%) said they bought a property with more bedrooms than they currently needed, to avoid upsizing later. Across all other ages, only 13% did the same.

Also, new builds are proving particularly popular with first-time buyers. This is especially noteworthy considering that while millennials are buying prime London properties, many in this cohort are yet to get on the ladder. But, a sizeable chunk long to be homeowners[4].

A recent survey of prospective homeowners found that nearly half (44%[5]) are looking at new builds, with only 30% focusing on older properties. Specifically, modern features were cited by 53% of participants as a key draw, with 37% valuing improved energy efficiency. Also, outdoor space remains a key consideration for 22%, and 19% regard build quality as an important factor.

And let’s not forget, while millennials may be buying prime London property in greater numbers, Gen Z investors may not be far behind them. Some 64,000 landlords haven’t hit their 31^st birthday yet, according to UHY Hacker Young[6]. Around 3,000 of them aren’t even 21 yet.

Younger generations are set to continue to shape the BTL scene for some time. Thankfully, by looking ahead, brokers and borrowers may be able to get ahead of this burgeoning opportunity in the property market.

Looking ahead

Millennials buying prime London property could be spoilt for choice at the moment. Many wealthy homeowners and renters have left London’s prime areas due to higher tax burdens, moving to places such as Dubai and Milan[7].

Tax concerns and worries about the Autumn Budget have put downward pressure on the prime central London market. Agreed sales have plummeted to levels not seen since the pandemic and yet, the amount of unsold stock in the market has risen. There is clearly a disconnect between supply and demand.

This disconnect is pushing down prices. In mid-2025, prime London prices were on average 3.7% below the previous year. More recent data from Savills shows prime central London prices were down 4.7% annually in Q3 2025[8].

What this means is that where millennials are able to buy prime London properties, they’re doing so in a market with substantial discounts. Also, for those who can’t afford London, or where brokers are focused outside the capital, there it still opportunity.

Hamptons revealed that investor activity has largely shifted northward[9]. The North East led landlord purchases in Q3 2025, accounting for 28.4% of all homes sold. Regardless of whether landlords are after cheaper properties, or high-end investments, they have options.

How can specialist finance help

While an increasing number of millennials may want to buy prime London property, they’re likely to face a hard time doing so on the high street. Especially if they’re making an investment purchase.

Mainstream lenders are likely to place limitations on young borrowers. First-time landlords and millennial investors are unlikely to have much experience behind them, or relatively high levels of income. This will make it harder to apply for funding with banks, who primarily base their loans on a borrower’s income levels.

Fortunately, the specialist market can help here. At Market Financial Solutions, our bespoke loans are primarily assessed on the security property’s credentials, and the exit strategy at hand. This means we’re more open to hearing from young borrowers, and/or first-time landlords.

Across our bridging and BTL range, we can provide funding to borrowers as young as 21. What’s more, all our loans are underwritten from day one so where challenges may emerge, our brokers will have support at the ready. Even where an investment may seem unlikely – such as a millennial buying a prime London property – we will strive to find a solution.