Out of all Britain’s housing stock, one in five houses is now a buy-to-let property.
Two million private landlords own and rent out five million properties.
Research indicates that they will purchase another million properties over the course of the coming five years.
This means that 18% of all households rent from private owners in a national trend where the country has more renters than owners.
Figures from the British government suggest that more than one in three properties will be in the hands of private landlords by 2032.
Many private investors view property as a way to secure income and buy-to-let since 1996 has become increasingly popular way to invest money.
The first mortgages specifically for private landlords became available in 1996. Since then the number of properties owned through buy-to-let schemes has nearly doubled.
Its popularity was boosted by the 2005-2007 housing boom. The Great Recession which followed brought a clamp down on mortgage lending, forcing many people to rent instead of buying while those who already had mortgages benefitted from historically low interest rates.
The research was carried out by mortgage lender Paragon which published its “18 Years of Buy-to-Let” report.
