The generations embracing optimism in the current market, and where they may be investing

Wealth preservation may be the name of the game at the moment. Everything seems to be crashing and in the current climate, investors may be more likely to prioritise saving as much of their capital as possible, rather than investing it for growth. 

But, history has proven time and again that after a financial downturn, comes a rebound. The coming months may prove whether this is history repeating itself once again. 

To better understand how investors are thinking about their entire portfolios, and not just their property holdings, Market Financial Solutions commissioned an independent survey in February 2025. We surveyed a nationally representative sample of investors on their holdings. 

The results were comprehensive, covering multiple asset classes, and investor types. We segmented our results by portfolio size, gender, age, location, experience, and more.

We asked our respondents which asset(s), if any, do they plan to invest in or increase their investment in this year. Some 14% of our respondents revealed they planned to invest in property in 2025 but surprisingly, it’s younger investors who are particularly keen on property exposure. For those aged 18-34, this figure rose to 34%. Also, location wise, the highest proportion of investors looking to expand with property came from London (24%), the West Midlands (20%), and the North West (19%). 

Moreover, when we asked our respondents to what extent they agreed or disagreed with the statement “property offers more stability as an investment compared to other asset classes”, 68% of those in the 18-34 bracket agreed, compared to a wider average of 53%. Once again, investors in London also revealed themselves to be particularly optimistic about the property market (66%). 

With young property buyers embracing optimism, it’s worth exploring what it is they want from the market, or expect from it. What’s more, with regional hotspots emerging, perhaps we should explore the opportunities that could be jumped on by entrepreneurial property investors. 

What do young investors want?

Young investors need to be taken seriously in the market. Some may assume Gen Z buyers and Millennials simply don’t have enough wealth built up to majorly impact the property world any time soon. 

While that may be true to an extent now, it’s unlikely to remain the case for long. Within the next few years, literal trillions of pounds in wealth is set to be handed down from the old to the young in what’s dubbed the “great wealth transfer”. In Europe alone, around £3.5tn is predicted to be passed between the generations. By the looks of things, at least some of this wealth will find its way into the property market.  

Indeed, recent insight from the estate agency John Minnis revealed that many in the 25-34 age bracket are prioritising investing in buy-to-let properties to build their wealth, as opposed to purchasing homes to live in. What’s more, around of third of Gen Z have already started investing by the time they reach early adulthood, according to the World Economic Forum. The youngsters appear clued up.

All of this is already having an impact. It’s clear to see, the next generation of property investors have their eyes set on residential buy-to-let investments. As it stands, there are around 3,000 buy-to-let landlords in the UK under the age of 21. Meanwhile, some 63,000 are aged between 21 and 30.

Which regions offer potential?

The 'who' is apparent. But what about the 'where'? London, to an extent, will always draw investment, even in difficult economic climates. But why are property investors in the West Midlands and the North West more optimistic than most?
Well as it turns out, the West Midlands property market is booming. Some 60% of homes in the region saw year-on-year growth of at least 1% in 2024, according to Zoopla. Halifax also revealed that the average price of a house in the West Midlands is now sitting at £258,617, some 4% higher than what it was last year. 

The West Midlands also looks set to become a logistics powerhouse in the UK. Research from Savills shows the West Midlands 'mid-box' industrial market is experiencing significant momentum, and demand is rising for modern, high quality warehouse and logistics space. 

The North West also has plenty gong for it. Homes in the region are selling faster than their southern counterparts, and the region is primed to support buyers looking for particularly affordable options. Specifically, Blackburn with Darwen has been dubbed “UK's property hotspot” due to its accessibility. Also, a report from Funding Circle found that the North West is emerging as a new business “powerhouse” as entrepreneurs and start-ups flock to the likes of Manchester and Liverpool.

Even London, with its notoriously high costs, is seeing rising demand in surprising areas. Knight Frank expects, even with a lull in transactions on the horizon, that prime London properties will see an uptick in the summer. Moreover, rents in prime central London rose by 0.6% in Q1 2025 - the largest quarterly increase seen since November 2023.

The outlook for the economy and specialist lenders

Still, even with all this potential and momentum, there are many challenges out there which threaten to hold the market back. There’s the usual – inflation is still above target, borrowers are desperate for further base rate cuts, and tougher legislation is on the way for landlords and property investors.

But now, in addition to all this, there is the looming threat of a global trade war. This doesn’t inspire confidence. And we know what happens when an economy is gripped with fear.

Only a few years ago, we had to contend with Liz Truss’s Mini-Budget. The chaos it unleashed made mainstream lenders very nervous, and many tightened their criteria as a result. Some pulled their products entirely, leaving many property investors with fewer options to try and improve their position, or react to the news.

A trade war on a global scale threatens to dwarf the Mini-Budget fall out. There’s an elevated risk that high street banks once again restrict lending. Fortunately, specialist lenders will do what they do best if this occurs – provide flexible options that adapt to market’s twists and turns. At Market Financial Solutions specifically, we have never stopped lending, and we have no plans to do so.