Buy-to-let sector value approaches £1tn

November 13th 2014
By: Jon

Research has found that the value of Britain’s rental properties has expanded by £302bn since 2009 and is now £930.7bn.  Kent Reliance, a mortgage provider, has indicated that landlord’s housing assets are now 3.5 times the level they were in 2001.  This reinforces the demand for housing and underlines the difficulties that younger buyers face in securing a mortgage.

Landlord assets are expected to surpass £1tn by mid 2015 according to analysis of the private rented sector using official data.

The report says that “Rapid London house price growth has a much bigger effect on the private rented sector than it does in the wider housing market.”  London has taken the majority of the value at 41%, followed by the South East at 15%.  In London, 25% of the population currently rents their property compared to 18% in Britain overall.

Britain is becoming more continental in its housing make up – Andy Golding (Chief Executive of OneSavings Bank which owns Kent Reliance) said “while for many it is a lifestyle choice, the ongoing squeeze on wages, rising house prices, not to mention the difficulty in obtaining sufficient mortgage finance, is accentuating this shift in tenure from owner occupation to long term renting.”

In the year to June, the total value of rents was £44.8bn which is up 5.5% on a year ago.  This figure is almost half the UK’s total annual household on food.