IMLA (Intermediary Mortgage Lenders Association) is predicting that if the present housing trends continue that more than half of UK homes will be rented. The association looks at how the BTL market has affected the numbers of first time buyers.

The research reported that from 2007,  home owners are down by 4 per cent, dropping from 68 per cent down to 64%, whereas the rented homes have risen by the same amount from 14 per cent and now stands at 18 per cent.

BTL mortgages have only financed just under a third of the extra 1.31 million homes since 2007, the balance have been made up with homes being rented out by their owners, commercially funded purchases or even cash payments.

It strongly states that the failure of new housing build to stay in line with the expanding population has had a strong impact on first time buyers and of course with current supply and demand ratios means higher house prices.

The reduction of social housing and lower numbers of home buyers will mean that by 2032 that over half of homes will be rented privately, this will echo the 1970's. The research is based on predictions that by 2020 the population will be 67.8million and that by 2035 it will hit 75.3 million.

Other figures have also been included and there are some worrying stats about younger generations' homeownership. From 1991 and 2013, homeownership among 16-24 year olds in England dropped from 36% to 11% whilst amongst 25-34s it fell from 67% to 40%.

Peter Williams, executive director for IMLA, said: “There are many misunderstandings clouding the growth of buy-to-let, including its impact on first time buyers. This report is a fresh look at how and why the private rental sector has grown. It asks important questions about our current direction of travel and the failure to build enough homes to support the rising population.

“Growth of the private rented sector has been from a historically low base and has been fuelled by strong underlying demand. If current trends continue then demand for private rented property is likely to drive further expansion and increase the burden on our already-overstretched housing stock, at a time when first time buyers are also feeling the pressure of new mortgage market regulations.

“Pressure is likely to grow for planning restrictions to be relaxed to support a large increase in new building and address the chronic failure to keep up with housing demand. The inescapable conclusion is that we need a proper joined-up strategy to adequately serve owner-occupiers, tenants and landlords, and put an end to key forces pulling in opposite directions.”