The UK’s buy-to-let (BTL) sector has grown in value by around £239bn over the last five years, according to research from Octane Capital.

This figure for growth equates to a rise of 16.8% in value for the sector since 2017.

Octane Capital analysed the level of privately rented stock across each region of the UK in relation to current market values to calculate the total worth of the BTL sector. They then compared this BTL bricks and mortar value to 2017 to reveal how it had changed over the last five years.

The specialist property lending firm’s analysis showed there are an estimated 5.5 million private rental properties within the UK rental sector which is estimated to be worth a total value of £1.7trn, based on current market values.

While the level of privately rented homes has remained largely flat across the UK over the last five years, Octane Capital suggested that the total value of the BTL sector has seen a significant boost due to strong house price growth.

With just over one million private rental homes, the London market accounts for 19% of the UK’s total BTL properties, with the capital also home to the highest property values in the BTL space, totalling £500bn.

The South East has the next most valuable BTL market at £247bn, with BTL markets values also exceeding £100bn in the East of England (£168bn), South West (£156bn), the North West (£110bn) and the West Midlands (£104bn).

Commenting on the research, Octane Capital CEO, Jonathan Samuels, said the government has “tried its hardest to dampen investment” into the private rental sector in recent years, following several legislative changes around tax relief, stamp duty and tenant fees reducing the profitability of BTL investments.

“The pandemic has also proved problematic for some landlords who have suffered lengthy void periods due to factors such as the tenant eviction ban and a reduction in rental demand across our major cities, in particular,” Samuels commented. “Despite all of this, the sector has stood tall and continues to provide the vital rental market backbone that so many are reliant on.

“At the same time, the nation’s landlords have benefited from a considerable level of capital appreciation on their BTL investment and the value of the sector as a whole has increased substantially.

“Let’s just hope that whisperings of a higher rate of capital gains tax remain just that, as any further increase could spur a reduction in available stock, causing the total value of the market to decline in the process.”

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