£1.3trn in housing stock makes up English private rental sector

There is currently £1.3trn worth of housing stock within the private rental sector in England, according to research by Sequre Property Investment.

The buy-to-let (BTL) specialist analysed housing stock rented either privately or via a business and found that despite declining from a high of 4,832,000 in 2016, there are still 4,799,000 privately rented properties across England.

In the same period, house prices across England have climbed 8.9%, meaning that not only are there more rental properties, but landlords have enjoyed a strong rate of capital appreciation.

London is home to over a million private rented properties that account for 22% of all private rental stock in England. With London also home to the highest average house price, it means the capital’s rental market is worth £512bn alone. The South East is home to 14% of all private rental stock and is home to the second most valuable rental market at £229bn.

The research revealed that the North East accounts for just 4% of all rental market stock, the lowest of all English regions, although the region is still home to a private rental market worth £29bn in housing stock.

Sequre Property Investment sales director, Daniel Jackson, commented: “The private rental sector has grown considerably in recent times, both in terms of the level of stock available, but also where the value of this stock within the wider housing market is concerned.  

“Not only does this demonstrate the continued strength of the sector, but it also highlights its importance as the backbone of the private rental market. Without it, the government would be left with a shortfall of nearly five million homes and given their consistent failures in addressing the current housing crisis, this would no doubt be yet another obstacle they would fail to overcome.”

Jackson said he hoped the government had “realised the importance” of the rental market after the widely expected increase in capital gains tax failed to materialise during the last Budget.

He added: “While a BTL investment will predominantly focus on the yields available, the capital appreciation of a rental market investment is an additional benefit that many landlords can reap on exit. Had the government decided to penalise this, a mass exodus of landlords would no doubt have followed.”

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