The majority of landlords are in London but an increasing number can be found in regional cities like Manchester, Leeds and Birmingham.
But many of these new landlords are inexperienced and are not fully aware of their responsibilities or what is involved.
Various organisations are pointing out that renting requires a great deal of organisation and financial planning. They are calling for more help and regulation.
'With the housing market going the way it is, there are large numbers of new landlords who are in the dark about the basic taxation issues surrounding renting a property. We are speaking to more and more people every week who are choosing to rent before they fully understand the implications,' said Mark Stockton, Director of UK accountant brokers Just Accountants.
The Law Commission wants better regulation of the private rented sector as it believes too much privately rented property is in a poor condition and badly managed. It has put forward suggestions for self regulation.
'An increasing number of people are deciding to rent in the current economic climate making it more important than ever that the private rented sector takes its place effectively in the housing market,' said Professor Martin Partington who has written a report for the Commission.
However the Residential Landlords Association wants to go further and believes the way forward is a system of enforced self-regulation, overseen by a central body.
'If we are going to have a responsible private rented sector that can rid itself of bad landlords then an element of enforced regulation will be required. That's the ultimate reality,' said the association's lawyer Richard Jones.
