Private Landlords account for £1tn worth of property across Britain
Official figures show that in 2016 the number of households that will be living in rented accommodation will number 5 million. This sector has more than doubled since 2001. The private rented sector has increased dramatically over the last few years as buyers are locked out of the property market because of high prices and difficulty is getting a mortgage. Home ownership is now the lowest since records began as more and more families are forced to rent. London accounts for 41% of the nations buy to let wealth with the south east accounting for 15%.
Cash continues to flow into the buy to let market with relaxation of buy to let loans
Buy to let money continues to flow into the property market and looks set to climb as the nation takes to the streets to hoover up a much buy to let property with the unexpected Conservative government. Buy to let mortgages have increased over the last year with just under 34% of money lend going toward a buy to let. This is going to increase now that the Labour party have lost the election. There is a lot of pent up demand from buyers who have been waiting in the wings to see if they would be punished by a Labour administration.
Demand from tenants continues to increase
Demand from tenants have pushed up the amount of rent collected by landlords to around £3.8tn a month according to official figures. Landlords are benefiting from the increase in houseprices as the market continues to climb. The buy to let market has also been boosted by the relaxation of mortgage lending that is prevalent amongst UK lenders. The competition for UK buy to let loans is fierce with fixed rate loans now at record lows. This has boosted money supply and increased demand for buy to let properties.