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Buy-to-let Britain continuing to grow

According to new research, there are now almost two million landlords in the UK.

UK House Investment

According to new research, there are now almost two million landlords in the UK.

The figures suggest that the rapid growth of the UK’s buy-to-let market has seen £1 trillion worth of property become owned by landlords within the UK.

Compiled from various sources by specialist lender Paragon, the report highlights how dramatically home ownership has changed in the past 20 years – since the beginning of the UK’s buy-to-let market.

The number of landlords within the UK has now risen to just under two million, a significant increase from the tens of thousands who let properties in 1996. This surge of new landlords has accumulated an estimated total of 4.9 million properties in the UK market worth an estimated £989bn.

The report suggests that landlords now own 18% of all homes within the UK, with figures indicating that this proportion will continue to increase over the coming years. It is estimated that there will be an additional one million rental properties in the UK over the next 5 years.

Unlike much of the UK economy, the buy-to-let market has recorded some of the fastest growth since the financial crisis of 2008-09.

Between the years of 1986 and 2012, approximately 5 million homes were built in the UK, of which just over half are now owned by private landlords and are let out to tenants. In the same period, the proportion of social rented units has drastically fallen whilst owner-occupied homes have also slowly decreased.

The financial crisis also had an impact on the makeup of landlords in the UK. With dramatic cuts to the funding available to landlords, properties were solely available to cash-rich purchasers. However, landlord renting is now growing quicker than before, with more than 700 buy-to-let mortgage deals currently being brokered, with £20bn lent last year in total.

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