There are now almost two million landlords owning £1 trillion of property. Read on for more charts and statistics – including predictions of how our housing market will look in 2032.
The rapid growth of buy-to-let has seen the number of private landlords reach almost two million, according to a report published today.
Paragon, a specialist landlord lender, has drawn together statistics from a number of sources highlighting the dramatic growth in buy-to-let – and the extent to which it is transforming home ownership in Britain. Here are some of the figures:
– From landlords numbering in tens of thousands 20 years ago, today almost two million private landlords own 4.9 million properties
– The number of buy-to-let properties is expected to grow by a further million over the next five years
– The current value of buy-to-let properties is estimated at £989bn
Paragon’s research suggests that landlords now own 18pc of homes, almost one in five, a proportion that is on the rise.
Nor does the financial crisis appeared to have slowed the growth of buy-to-let. The following graph shows the number of rented properties in Britain – with some of the fastest growth appearing in the years following the banking crisis of 2008-09.
The 1988 Housing Act introduced types of tenancy that were less onerous for landlords
Of new homes built in recent decades, a large proportion have ended up in the rented sector. Government figures show that between 1986 and 2012 about 5m new homes were built. Of these just over half are owned by private landlords and let.
The graph below illustrates the point but with reference to homes built since 2000. It shows a decline in public housing (below the line) and a modest rise and fall in owner-occupied housing stock. But by far the greatest chunk of new housing provision is in rented stock.
New housing since 2000: who owns it?
And expectations are the trend will continue, as new investor cash continues to come into the sector.
The following table shows the predicted shift in housing tenure up to 2032. The far right column shows the total housing stock.
How Britain’s housing market will look in 2032
Being able to get special buy-to-let mortgages has been crucial for aspiring private landlords. Specialist landlord loans were introduced in 1996, but grew most strongly in the years 2005-07.
After the onset of the crisis landlord lending all but dried up, and buying was then mainly limited to those property investors who had cash. But that quickly changed. Landlord lending is rising at a faster rate than ever.
In today’s report Paragon says there are currently more than 700 buy-to-let mortgage deals available. More than £20bn was lent to landlords last year and that sum is predicted to grow at an annual rate of between 20pc and 30pc.
For most, buy-to-let tops up other income and isn’t the sole or main income. Only 10pc derive half or more of their total income from their property lets.
The average landlord is aged 56.
Source: The Telegraph
Last Updated: 2014-10-30T14:51:47+00:00