The strong performance of the buy-to-let sector has impressed both existing and prospective landlords in recent years, and it seems that this is set to continue if current trends in the market are maintained.

According to a report commissioned by the Resolution Foundation and Shelter from Cambridge University, only 27 per cent of British households will be owning with a mortgage come 2025 - a dramatic fall considering that levels were at 43 per cent in the early '90s.

What's more, with the figures detailing that the past five years have seen a substantial 86 per cent rise in the number of families with children who live in rented accommodation, it seems that the proportion of Brits who rent their home is set to continue to rise for the foreseeable future.

Vidhya Alakeson, director of research at the Resolution Foundation, said: "This report is further evidence of the urgent need for more and better quality rented accommodation that meets the needs of families with children."

Given that the forecast also predicts that 36 per cent of households in London will be renting by 2025, it appears that the price of housing in the city will continue to drive more people towards the private rental sector.

"This report shows what is fast becoming the new reality of our housing market in the current economic climate: home ownership continuing to fall while renting becomes a way of life for British families," Shelter's chief executive, Campbell Robb, added.

With renting in the capital expected to overtake the number of people in mortgage-owned homes by 2020, it appears that landlords in London will face growing levels of demand for their properties.

If the buy-to-let sector continues to grow then investors will be reliant on the willingness of lenders to grant finance, as well as policies such as landlord insurance to protect their assets.