Britain’s strong army of landlords has almost doubled their property holdings in a decade – and is now worth a total of £1 trillion.

Recent study shows, private landlords now own almost one in five homes across the UK and they are set to buy a further million in the next five years, highlighting the phenomenal growth of buy-to-let investment

The figures released report, 18 percent of households now rent from private landlords and the proportion is growing, as investors continue to see property as a source of future income and profit. The figures also provide the latest insight of Britain’s changing housing market, as fewer people now own as more rent.

According to mortgage lender Paragon, two million private landlords now own and rent out five million properties, and the government’s own figures suggest that by 2032 more than one in three properties will be owned by private landlords.

Buy-to-let became popular in the housing boom during 2005-2007 when property investment “clubs” proliferated and thousands of investors bought newly built flats without ever viewing them. The widely predicted bust never followed.

Younger generations were then hit by a mortgage drought caused by the banking crisis making it even harder for them to get on the property ladder. At the same time plunging interest rates cut mortgage costs and helped many amateur landlords hang onto their properties, even if they were in negative equity.

The buy-to-let market has gathered pace in the past few years with mortgage lending rising at over 20 percent each year and the number of available landlord loans now topping 700.

Source: The Telegraph