The estimated total value of the private rental sector (PRS) has climbed by 30% since 2019, research by Sirius Property Finance has revealed.
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.
The South East has driven this growth with a rise of 9,1%, along with the South West where there has been an increase of 7.4% and the North West where the figure was up 3.8%.
However, there has been a decline in PRS stock compared to pre-pandemic levels in the East Midlands (9.9%), Yorkshire and Humber (0.4%) and East of England (0.3%).
The data shows that the current total value of PRS stock is estimated at £1.536trn 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 where there has been a 39% rise, the South East where it has gone up by 39%, South East with an increase of 37% and West Midlands with a rise of 31%.
In addition, research shows that of the 4.876m rental homes across England, just 130,272 are currently listed online as available to rent.
This equates to just 2.7% of all PRS stock, highlighting the pivotal role the sector plays in today’s society.
Sirius Property Finance managing director Nicholas Christofi says: “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.”
