The value of private rented sector (PRS) stock in the UK has totalled more than a staggering £1 trillion for the first time ever
According to recent research by estate agent Savills, PRS stock has increased in value by 17 per cent over the last year and by 57 per cent between now and 2009.
There are now 5.4 million privately rented homes across the UK, a figure that has seen an increase of 1.2 million in the last five years. This means the sector outnumbers social housing by a total of 700,000 homes.
Nationally, the total value of properties overall has now reached £5.75 trillion which represents a rise of £543 billion since 2013 and is up by £986 billion over the past five years.
Owner occupied homes are still the most dominant force within the property market, with a total of 15 million households falling into this category which now has a value of £3.9 trillion.
This value is split equally between homes that are mortgaged and homes that are owned outright, according to Savills.
The amount of homes owned without a mortgage attached has been on the rise lately with an increase of 437,000 taking place during the last five years. The total now stands at 8.3 million properties.
Over the same time period, homes with mortgages dropped in numbers by almost 800,000. It is believed that the impacts of the financial crisis and the constraints on mortgage lending which it caused are the reasons behind this fall.
Properties in London and the South East have a combined value of £2.5 trillion and therefore account for an increasing share of the UK’s total property worth. Of this amount, £1.48 trillion are found in London as the capital has seen growth worth £247 billion since 2013.
Housing stock value increased in all regions of the UK in 2014 and most areas have experienced a rise across the last five years.
England’s North West and North East as well as Wales and Northern Ireland are the only exceptions.
For more information and news on the growth of the UK Buy to Let rental market see a recent article from Jeni Browne.