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One in five households to rent within ten years

One in five households to rent within ten years

Category: Mortgages

Updated: 12/05/2011
First Published: 12/05/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The private rented sector is set to expand considerably in the coming years with one in five households predicted to live in rented accommodation by 2020.

A fall in the number of owner-occupied households and social housing will see the number of people who become tenants rise significantly, according to Paragon.

Around 3.4 million households currently live in rented accommodation, representing almost one in six UK households, and a staggering 70% more than the 1.4 million which rented in 2001.

However, this number is expected to grow even further over the coming decade, with forecasts suggesting as many as one in five households will live in rented homes by 2020.

With demand for rental properties already outstripping the number of homes which are available to let, the cost of renting has been rising at a record rate in recent months.

While bad news for prospective tenants, it is landlords and property investors who are reaping the benefits.

Although buying up even more properties to rent is certain to be the priority of many investors, securing the necessary buy-to-let finance has been far from easy of late.

However, recent research from suggests this might be starting to change.

Earlier this week, the number of buy-to-let mortgage deals available to property investors reached its highest level since October 2008.

There are currently 463 buy-to-let mortgages available on the market, 55% more than landlords had to choose from in May 2010.

More and more lenders also continue to return to the market, while the average interest rate being charged on buy-to-let deals has been falling too.

The average rate on a buy-to-let mortgage currently stands at 4.97%, down from the average of 5.30% seen a year ago.

If you're thinking of becoming a landlord, or are an existing landlord looking to secure more finance, we have recently teamed up with buy-let-let mortgage broker Openworks to help make your life easier.

Our buy-to-let mortgage best buy charts are also constantly updated with the best buy-to-let mortgages that become available

Find the best mortgage for you - Compare buy-to-let mortgages .

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.