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Buy To Let has grown massively in recent years - new statistics

Government data shows that as of 2022 some 15.29 per cent of homes in England are privately rented, with 14.9 per cent in Scotland and 14.0 per cent in both Wales and Northern Ireland. 

London is the location with the most rented homes, with 20.81 per cent. The North East of England has the least, with 13.27 per cent.

An analysis of this data and separate figures by the Financial Conduct Authority by shows that by the end of last year the total value of the buy-to-let mortgage market stood at £41.3 billion. The market has grown by 88 per cent compared to 2013.

Blackpool has the smallest rent-to-house price ratio, at 1:237, while the Cotswolds has the biggest, at 1:538. The rent-to-house price ratio is calculated by dividing the average house price (from the UK House Price Index) by the average monthly rent (from the Office for National Statistics).

According to the Department for Levelling Up, Housing and Communities, most rental properties are terraced houses (46.1 per cent) or purpose-built flats or maisonettes (38.7 per cent).

England’s landlord population is primarily dominated by private individuals, representing 93.7 per cent of the country’s landlords. Companies comprise just 4.7 per cent, and a mixture of private and companies forms 1.0 per cent. 

Regarding portfolio size, 43 per cent have only one property, while 39.3 per cent have between two and four properties. Landlords with a portfolio size of five properties or more make up less than a fifth of the total.

Separate surveys suggest that over the next two years, most landlords plan to keep their number of properties the same. Many who want to decrease their portfolio or leave the sector attribute their decision to recent and forthcoming legislative changes. 

For both new and existing tenancies, more landlords increased the rent (45.5 and 26.4 per cent respectively) than those who kept the rent the same or decreased it. 

As of 2022, the total gross advances (new mortgage loans given to borrowers) amounted to £322.5 billion. Of this total, buy-to-let mortgages made up 12.8 per cent.

However, most of the mortgage market is still dominated by mortgages for owner-occupied properties – this makes up over three quarters (87.2 per cent). The actual value of the buy-to-let mortgages equates to approximately £41.3 billion, showing a significant level of investment in buy-to-let.

Compliance with legal requirements is high, with smoke alarms on each floor in 98.8 per cent of properties and electrical installation checks by a qualified tester in 91.4 per cent of cases.

The analysis is lengthy and comprehensive, and can be found here.

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