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More Britons are choosing to rent from a buy-to-let landlord as mortgages remain an elusive dream for millions – and this means there has never been a better time to invest in a livable property.

According to the Department of Communities and Local Government, The number of owner occupier households decreased from a peak of 14.8 million in 2006 to 14.6 million in 2009. At the same time, the proportion of social renting households is also in decline, falling from 19.5% in 2001 to 17.7% in 2007.

That leaves a big hole because while the number of owned houses and social homes are declining, people still need a roof over their heads. The Government says 41% of private renters rely on the private rented sector for their long-term housing needs and have no intention of purchasing a home.

Nigel Terrington, chief executive of the Paragon Group says: "The private rented sector's importance to the UK's housing needs is growing annually as increasing numbers of people decide to rent – owner-occupation has been in decline since 2003 and we believe that this trend will continue as potential buyers are either unwilling or unable to step on the housing ladder."

While there are less homes, there are more people – the Government says the UK's population is forecast to grow from 61 million today to 71.6 million by 2033. This means those who do invest in property will not have to look very far for tenants.

Terrington says: "There are growing numbers of single person households, economic migrants and students, and these groups all have a greater propensity to rent rather than buy. People are also getting married and starting families at a later age, so the average first-time buyer age is creeping up, while affordability is a growing problem for most people that want to get on the housing ladder."

SOURCE: DCLG, Paragon, 26/02/10

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