The amount of housing owned by private landlords has gone up by more than 40 per cent since the financial crisis and now accounts for 20 per cent of the UK total, according to information published Savills Estate Agents.
The tightening of mortgage and other lending conditions means fewer people are now able to consider buying a house, which has created an opportunity for some investors in the buy to let market.
The research conducted by Savills suggests that, unlike during the boom years, it is rising rental costs rather than property value appreciation that is attracting investments. Mortgages taken out by private landlords rose 16 per cent in the third quarter of 2011 and are currently worth £3.8 billion, according to the Council of Mortgage Lenders.
A high percentage of first time buyers are still struggling to get themselves onto the property ladder, suggestions of a resurgence in in buy to let investment is likely to increase pressure on the government to introduce measure assisting first time buyers..