Analysis of government figures by the Nationwide suggest that the buy to let sector is still growing despite tax changes and other disincentives for investors.
The latest English Housing Survey from the Ministry of Housing, Communities & Local Government, as analysed by the Nationwide, suggests that the number of privately rented households in England has reached a record high of 4.7m.
This is an increase of around 75 per cent over the past decade; some 20 per cent of households in England are now privately rented, up from 13 per cent in 2007.
“Within the 35 to 44 age group, the number of households renting has increased by 126 per cent over the past 10 years to 1.1m. There has also been a significant increase in the number of privately rented households in the 45 to 54 age group” explains Nationwide chief economist, Robert Gardner.
“It is interesting to note that the private rental market has continued to show steady growth despite a significant slowing in buy to let mortgage lending, suggesting a shift amongst landlords towards cash purchases. Changes to the tax system, limiting deductibility of mortgage interest, may be one of the factors behind this” he adds.
“Within the owner occupier sector, we’ve also seen a further uptick in the number owning outright, which stands at a record high of 7.9m. This is an increase of 1.4m over the past decade, nearly all of which has been amongst homeowners aged 65 or above.”