Young landlords turn to TikTok for advice amid regulatory risks

The proportion of younger landlords in the buy-to-let sector is growing rapidly, with data showing that millennials and Gen Z now comprise 60% of new investors entering the market in England and Wales.

However, concerns have surfaced about their increasing reliance on social media platforms such as TikTok for property investment advice.

Social trends

Interest in property investment content on TikTok has risen by 170% over the past three years. More than 516,000 posts use the hashtag #PropertyInvestment, and combined hashtags such as #Landlord and #PassiveIncome attract millions of views. According to keyword analysis, monthly searches for phrases like "property investment" and "property investment for beginners" are also significantly high among TikTok users.

Many younger landlords are turning to TikTok and other social media platforms for guidance, favouring them over traditional sources of professional advice. This shift is raising questions about the accuracy and reliability of some of the advice being shared online.

Professional concerns

The surge in social media-based property advice has been highlighted by property insurance specialists, who warn that relying on platforms not specifically regulated for financial information could put investors at risk. The Financial Conduct Authority (FCA) has separately warned that financial advice on social media can lead to significant consumer harm when unclear, misleading, or from unauthorised individuals. The FCA requires that only authorised persons or firms should provide financial advice to ensure consumers receive information that is accurate and fair.

Steve Parker, Managing Director at Just Landlords, described the trend among younger investors as both energetic and concerning.

"The enthusiasm and curiosity we're seeing among younger landlords is fantastic, but it's concerning that many are relying on social media for complex legal and financial advice. When it comes to things like compliance and protection, simple mistakes can be costly." said Steve Parker, Managing Director, Just Landlords.

Compliance risks

The regulatory environment for landlords in England and Wales is complex and subject to frequent change. There are significant legal and financial implications for landlords who are unaware of the latest requirements, including energy efficiency standards, deposit protection schemes, and strict rules around safety checks for gas and electricity. Non-compliance can result in substantial penalties, or in extreme cases, being prohibited from renting out properties altogether.

There are also ongoing costs that first-time landlords may overlook, such as management fees, maintenance, insurance and void periods, which require careful budgeting. Specialist landlord insurance, rather than standard home cover, is a requirement for most mortgage lenders and provides protection for risks specific to the rental sector, including tenant-related damage and loss of rent.

Relationship management

Industry specialists note that building positive relationships with tenants can help reduce turnover and improve property upkeep. They suggest that good communication and a timely response to maintenance issues can encourage tenants to stay longer, minimising costs associated with finding new occupiers.

New landlords are also urged to focus on longer-term asset value rather than short-term yield alone. This includes considering local infrastructure changes and potential regeneration projects, which can impact property desirability and value over time.

Future requirements

Landlords must also plan for upcoming changes in regulation, such as new minimum energy efficiency standards. By 2030, rented properties are required to have an Energy Performance Certificate (EPC) rating of at least 'C'. Upgrading properties ahead of these deadlines could help attract tenants and reduce long-term costs.

Parker added, "The rise of young landlords reflects a wider cultural shift in how younger generations approach money, side hustles and investment. But while platforms like TikTok are brilliant for sparking financial curiosity, they can't replace solid guidance from property professionals."

"Buying and managing a rental property is a serious financial commitment and getting it right early can make all the difference," said Parker.