Cumulative Value of BTL Property Approaching £1 Trillion
November 12, 2014 |
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According to the Buy-to-Let Britain report by mortgage provider Kent Reliance, the value of property owned by landlords will break the £1 trillion barrier in the second quarter of next year. The total value of property in the private rented sector currently sits at £930.7 billion, having risen by £109.5 billion in the last year alone.
The value of landlords’ assets is now 3.5 times what it was in 2001 (£262.1 billion).
The resurgence of property prices and strong tenant demand have combined to accelerate growth in the sector. One of the UK’s largest lettings agents recently forecast an increase of 1.2 million households in the private rented sector over the next five years, meaning that nearly a quarter (24%) of all homes will be privately rented.
The number of buy-to-let loans issued in the first half of 2014 was 93,300, 34% higher compared to the previous year, and more than in the whole of either 2009 or 2010. There are now almost 4.5 times as many buy-to-let mortgage products available to landlords than there were in 2010.