Over 50 per cent of houses will be buy ot let or second homes by 2026, according to property expert David Lawrenson.
Lawrenson, of lettingfocus.com says the BTL market will increase for several reasons, which he will outline at the Property Investor Show from September 22-24.
He says housing supply will not keep up with housing demand especially if there is no change to inward migration.
He recognises that people will continue to look to property as a secure investment because they see the stock market as too volatile, they feel failed by the life companies over the endowment crisis and do not trust the Government on pensions.
Lawrenson says as owning a home becomes impossible for those who cannot rely on parents for a leg on to the ladder, they will be forced to rent, creating a pool of available tenants and people are attracted to renting for flexiblity reasons.
He says: “Sixty years ago, well over half of all properties in the UK were privately rented. But the years of post war rent controls took their toll and private letting collapsed as a business. Everything changed in the late 80s when new laws made it easier for landlords to recover possession of a property. The proportion of houses in the UK that are rented from private landlords is recovering from a 1980s low of about 9 per cent, but is still only about 11 per cent today. In the long term I think that privately let property will account for a much higher proportion of the housing stock than today. In fact, we could easily see the proportion of property that is either let out or used as second or holiday homes hit 50 per cent of the UK housing stock by 2026.”