Octane Capital
MARKET OVERVIEW: BUY-TO-LET SECTOR GROWS BY £239BN Octane’s research reveals that the UK’s buy-to-let sector has grown substantially in value over the last five years, increasing by almost £240bn
We analysed the level of privately rented stock across each region of the UK in relation to current property market values to find the total worth of the buy-to-let sector. We then compared this buy-to-let bricks and mortar value to 2017 to reveal how it had changed over the last five years.
CURRENT BUY-TO-LET MARKET VALUE Our team’s analysis shows that there are an estimated 5.5 million private rental properties within the UK rental sector and based on current market values we estimate the total value of the nation’s buy-to-let stock to be £1.7 trillion. With just over one million private rental homes, the London market accounts for 19% of the UK’s total buy-to-let properties. With the capital also home to the highest property values, it sits top 14
where the total worth of the buy-to-let sector is considered to be over £500bn in value. The South East is home to the next most valuable buy-to-let market at £247bn, with buy-to-let values also exceeding £100bn in the East of England (£168bn), South West (£156bn), the North West (£110bn) and the West Midlands (£104bn).
LARGEST UPLIFT IN BUY-TO-LET MARKET VALUE While the level of privately rented homes has remained largely flat across the UK over the last five years, the total value of the buy-to-let sector has seen a significant boost due to strong house price growth. The UK’s buy-to-let market has climbed by £239bn since 2017, a 16.8% increase.
