An analysis of Companies House data suggests that young entrepreneurs are turning to property investment.

This is despite the vast amount of red tape and extra tax poured on the sector in recent years.

A study by business insurer Hiscox showsa sharp increase in companies run by Generation Z (born 1997–2012), with 393,531 active directors under the age of 28 operating UK-registered businesses in 2025. 

‘Other letting and operating of own or leased real estate’ ranked as the second-most popular sector for these younger entrepreneurs, accounting for 4.7% of all Gen Z businesses.

This typically refers to companies that buy and hold property and rent it out. 

A spokesperson says:“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.” 

 
The number of Gen Z-run businesses has grown by an average of 78% annually, while shareholder appointments have soared even faster, at 128% annually, showing the generation’s growing business acumen. 

 
You can see the full Hiscox report here:https://www.hiscox.co.uk/business-blog/next-gen-z-entrepreneurs-future-business-getting-younger