0

It’s not just the housing market that has benefited from the pandemic property market boom, with the estimated total value of the private rental sector (PRS) climbing by 30% since 2019.

The current state of the PRS has been analysed, looking at the level of stock, the current market value of this stock, the average yield available and how this has changed since 2019.

The latest figures show that, despite the government’s best efforts, the overall size of the PRS has grown by 2.4% across England since 2019, with 4.876m properties helping to house the nation’s tenants.

LIS Show – MPU

The South East has driven this growth with a 9.1% increase, along with the South West (+7.4%) and the North West (+3.8%).

However, the East Midlands (-9.9%), Yorkshire and the Humber (-0.4%) and East of England (-0.3%) have all seen a decline in PRS stock when compared to the pre-pandemic market.

What’s more, the analysis shows that the current total value of PRS stock is estimated to sit at a staggering £1.536 trillion across England, having seen a 30% increase since 2019 alone.

At an estimated £575.7bn, London remains home to by far the most valuable PRS where total stock value is concerned.

However, when compared to the pre-pandemic market, the capital has seen the smallest increase in this total value at 16%.

The South West has driven PRS market performance in terms of the increase in total value, up 41% when compared to 2019.

The total value of PRS stock has also increased by more than 30% across the North West (+39%), South East (+37%) and West Midlands (+31%).

Finally, the analysis shows that of the 4.876m rental homes across England, just 130,272 are currently listed online as available to rent, equating to just 2.7% of all PRS stock, highlighting the pivotal role the sector plays in today’s society.

Managing Director, Nicholas Christofi of Sirius Property Finance, the debt advisory specialists responsible for the analysis, commented:

“Despite the government’s sustained attempts to dampen the enthusiasm of buy-to-let investors, the private rental sector has continued to grow in size over the last few years.

This growth, combined with the high rates of house price appreciation seen throughout the pandemic, have pushed the total value of the sector to a quite remarkable level.

However, previous whisperings of a hike in capital gains tax will remain a worry for those who have benefited from an increase in the value of their buy-to-let portfolio.

Should these changes come to fruition in the future, we may well see many landlords scramble for the exit to avoid the government’s latest cash grab.”

SUBSCRIBE
Subscribe to our weekly newsletter
Stay informed with our leading property sector news, delivered free to your inbox. 
Subscribe
Your information will be used to subscribe you to our newsletter and send you relevant email communications. View our Privacy Policy
Property Notify
Property Notify is a leading property sector publisher reporting on breaking news and political changes affecting the UK property industry, in addition to finance, tax and investment coverage we provide a hub to explore, contribute, invest in and celebrate the property industry. - Read more.

    Nationwide House Price Index: Higher Borrowing Costs Lead to Slowing of House-Price Growth

    Previous article

    Supreme Court Backs Residents Against Tate Modern in Landmark Ruling

    Next article

    You may also like

    Comments

    Leave a reply

    Your email address will not be published. Required fields are marked *

    More in News