Figures from the Council of Mortgage Lenders show that the number of outstanding Buy-to-Let mortgages in England has increased from around 120,000 in 2000 to around 850,000 in 2006. Despite this increase, the private rented sector as a whole only increased over this period from about 10 per cent. to 12 per cent. of the total housing stock1.
Table 1 demonstrates that between 2000 and 2006 the number of BTL mortgages rose considerably more rapidly than the private sector rents index1.
1 Source: CLG Survey of English Housing.
2000 2001 2002 2003 2004 2005 2006 Private sector rent index (Base 2000) 100 109 116 123 124 123 130 Outstanding BTL mortgages index (Base 2000) 100 154 229 347 437 583 706 1 These figures are best viewed graphically.
In recent years, due to the increase in supply of private rented properties, driven by the growth in Buy-to-Let, private sector rents have not been rising as fast as house prices suggesting that the private rented sector provides a more affordable alternative to owner-occupation. This relationship is displayed in Table 2.
2000 2001 2002 2003 2004 2005 2006 Private sector rent index (Base 2000) 100 109 116 123 124 123 130 House price index (Base 2000) 100 110 128 149 165 173 182 1 These figures are best viewed graphically.
Information is not held centrally on the number of Buy-to-Let properties below the national level.