Buy-to-let investors are set for a good few years as more Brits are forced to rent.
According to the Council of Mortgage Lenders (CML) the number of new properties being built will fall in the coming years, contributing to the existing shortage of housing stock. At the same time, a lack of mortgage availability is making it impossible for many people to buy.
The rate of new builds fell last year to its lowest rate since 1948. It is estimated that as many as 290,000 new homes are required each year in order to satisfy demand. Between 1999 and 2009 new build rates peaked at just 170,000 per year.
At the same time, the average deposit for a first-time buyer is now £34,000 - up significantly from £12,700 on 2007. The average deposit is now significantly higher than the average annual income.
The CML has claimed that the likelihood of prospective first-time buyers between the age of 25 and 34 actually being able to purchase a property is now just half the level seen a decade ago.
