The UK boss of a global credit intelligence operator says growing house prices will trigger the rise of corporate landlords.

Aaron Milburn, UK managing director for Pepper Advantage, says: “[This week’s]

Rightmove House Price Index shows prices rising again in September, supporting the RICS survey last week that reported prices rose for the first time in two years and reinforcing the challenge facing first-time buyers. 

“Following [a] series of rate cuts for fixed-rate mortgages by high-street lenders, and with Labour’s new housing initiative yet to take hold, we can expect this trend of rising prices to continue for the remainder of 2024.

“Rising home prices will exacerbate a fundamental shift taking place in the UK housing market. With buying increasingly out of reach for many, more people are looking to rent, yet a growing number of buy-to-let landlords are exiting the market as mortgage holders continue to be refinanced onto higher rates. 

“The pressure on renters in many areas is becoming acute.

“Looking further ahead, it’s possible that the widening gap left by private, ‘mum and dad’ landlords will be filled by corporations, which could see the UK moving toward a more US-style rental market.”