Large-scale investment into the build to rent market is set to more than triple in the next five years, according to Knight Frank.
The agent is forecasting the value of the sector will rise from £15bn to more than £50bn by 2020.
Its survey found that all the investors interviewed planned to equal or increase their current level of investment.
Institutional investment into the rental sector accounts for around 2% of the UK market, valued at as much as £1tn. By 2020 this could increase to 5%.
The survey also found that investors expected to lose around a quarter of their rental income through management costs.
Just 13% of those interviewed cited raising capital as a barrier to investment, with 63% citing land supply and 44% planning policy as the key barriers to entry.
Increased regulation was found to be a deterrent, with 38% saying they would not invest in Scotland because of the Private Tenancies Bill, which regulates rental increases.
“The major risk to the emergence of high-quality bespoke and long-term rental accommodation is government legislation,” said James Mannix, head of residential capital markets at Knight Frank.
