The total value of the UK private rented sector is set to exceed £1tn within the next four weeks, according to mortgage provider Kent Reliance, part of the OneSavings Bank Group.
The Buy to Let Britain report says 150,000 new households have been created in the sector in the past 12 months, accounting for 77% of all new UK households, and pushing the total value of the sector up to £990.7bn.
PRS landlords across Britain achieved returns of more than £111.5bn, according to the report, with £67.2bn in capital gains, and £44.3bn in rental income. The value of the PRS has more than trebled over the past 15 years and the sector is now equivalent to 43.1% of the UK stock market, up from 12.2% in 2000.
Andy Golding, chief executive of OneSavings Bank, said: “Landlords are seeing the benefit of a structural change in Britain’s housing market, with tenant demand ever strengthening. Long-term price inflation is not in danger, given the gaping chasm between growing demand for housing and the number of houses being built each year.”
The sector is forecast to increase from 4.8m households to 5.5m by 2020 as new housebuilding fails to meet demand. The report said just 141,000 homes were completed in the past year, well below the 243,000 required.
The report based its findings on data from the Office for National Statistics, Land Registry, CML, Citylets and LSL Property Services.
