Landlords in Great Britain are sure to welcome news that the cumulative value of their property is set to break a notable sum.
According to the inaugural Buy to let Britain report, commissioned by Kent Reliance, the total sum of all privately rented properties in the UK currently stands at £930.7 billion, with the £1 trillion barrier expected to be breached in 2015.
The study revealed a 13.3 per cent rise in total values when compared to figures from the year previously, marking a £109.5 billion increase.
It proves the potential of property as a lucrative source of additional income and the investment strength found in bricks and mortar. Despite the recent low in 2009, there has been a £302.5 billion gain since that time.
When looking at the figures from further back, the total value of all privately rented properties has almost tripled in little over a decade, with the total standing at £262.1 billion in 2001.
Furthermore, the confidence landlords have gained in the past 13 years is obvious, with the private rental sector expanding by as many as two million households since 2001. The report states more than 4.6 million homes are now within the sector.
Among the many reasons cited for an increase in popularity of rented accommodation are individuals and families choosing to be flexible, ongoing net immigration, falling real wages and continuing difficulties among first time buyers to secure a mortgage.
Andy Golding, chief executive of OneSavings Bank, a company that trades under the Kent Reliance brand, buy to let property is going from “strength to strength”.
“Landlords have benefitted from the recovery in house prices since 2009, which has pushed their wealth to within touching distance of £1 trillion. But as the sector’s value marches upwards, the main impetus has come from the growth in the number of households as demand from tenants continues to climb,” Mr Golding added.
Along with rising cumulative values of properties, the report revealed an increase in rental values, too. In the 12 months leading up to June this year, landlords earned a total of £44.8 billion, representing a 5.5 per cent (£2.3 billion) rise on the year previously.