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Research published by a major UK specialist lender – Kent Reliance – shows that the private rental sector (PRS) is growing at an astounding rate and is now bigger than ever before. In fact the growth is so great that the figures suggest there will be 5.5 million households in the rental sector by 2020. So, what else do the figures show?
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Landlords Generate Huge Returns for the UK Economy
• 150,000 households entered the rental sector in the last twelve months
• 77% of new households were created in the private rental sector in the last 12 months
• The value of the private rental sector is now worth a staggering £990 billion, which is an increase of 11%
• Landlords generate £111 billion in annual returns, an increase of £5.8 billion in the last year
• The private rental sector is now worth 43% of the UK stock market
PRS Large Enough to Rival Stock Market
The Chief Executive of OneSavings Bank, Andy Golding, says the private rental section has now come of age and with the demand for rental housing rising by the day, is now large enough to rival the UK stock market.
“…house prices are showing signs of steadying somewhat, but growth remains brisk. Long-term price inflation is not in danger, given the gaping chasm between growing demand for housing and the number of houses being built each year. Combined with the dearth of high LTV lending to first time buyers, this will continue to buoy demand for rental accommodation, as well as landlords’ returns, and the sector will continue to expand.”
