30 Oct

Landlords own one in five homes

Landlords own one in five homes

Recent years have seen a boom in the number of properties held by landlords, with one in five British homes now owned by a private investor.

Figures from mortgage lender Paragon show two million private landlords own and rent out five million properties following the growth in the buy-to-let sector.

This supports the growing trend that more people rent rather than own their own homes, with 18 per cent of households now tenants for private landlords.

The number of rented homes is set to continue to grow, with the government's figures suggesting that within the next two decades, more than one in three properties will be rented out. This is because investors continue to see property as the ideal way to enjoy strong returns in the long term.

Increasing numbers of buy-to-let products have come to the market since the housing boom in the mid-2000s, with mortgage providers now offering more than 700 different loans to help wannabe landlords expand their portfolios.

John Heron, managing director of Paragon Mortgages, explained: "The buy-to-let market has been a force for good for the wider UK housing market... It enabled landlords to access finance that was better designed to meet the specific needs of the rental market at much more competitive interest rates and thus helped expand quality and choice in the private rented sector."

Valerie Bannister, president of the Association of Residential Letting Agents, added that changes in legislation have helped to open up the UK property market to allow more people to benefit from the interest in rental property as an investment product.

"With the deregulation of the industry through the 1988 Housing Act, combined with the introduction of a suitable financing model through buy-to-let, the private rental sector has grown substantially since the 1990s," she added.ADNFCR-1222-ID-801757342-ADNFCR

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