Generation Z consumers are increasingly turning to property investment to generate income, despite being unable to afford their own homes, according to new analysis from Hiscox.
Its analysis of Companies House data between the financial years of 2012/13 to 2024/25, shows that ‘letting and operating of own or leased real estate’ now accounts for 4.7% of all Gen Z-run businesses, ranked as the second-most popular trade in this age bracket behind retail sale via mail order.
The research shows that these younger entrepreneurs are using company structures to access the property market, with the research estimating that there are 18,304 Gen Z directors operating a company in this way.
In many cases, they invest in lower-cost regions while themselves renting and living in more expensive cities.
Robin Edwards, property buying agent at Curetons, said: “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.
“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.”
Flipping properties
Buying and selling of own real estate also ranked highly, coming in fifth position for Generation Z.
“This can often refer to setting up companies for the trading and flipping of properties which are sold for a profit,” said Edwards.
“It can also include land acquisition for development and speculative investments where properties are bought and held for value appreciation before resale.
“We’ve seen several young investors using this structure, often leveraging social media to document their progress and sometimes even attract funding. Many are inspired by property influencers who have made the idea of property investment cool and more accessible. However, rising prices, mortgage restrictions and regulatory changes present challenges. So, while real estate remains a popular wealth-building strategy, it’s not always as straightforward as some may assume.”
Nick Thornhill, direct and partnerships director at Hiscox, said: “We’ve long believed that entrepreneurial spirit knows no age. 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.”