BTL sector has grown by £239bn since 2017

The value of the UK’s buy-to-let sector is booming at the moment, having grown in value by 16.8% over the last five years.

Research by bespoke bridging and lending firm Octane Capital calculates the value increase at around £239 billion since 2017.

The company first conducted an analysis of privately rented stock across the UK according to current market values. Then they compared those values to 2017 to reveal how much the buy-to-let (BTL) sector has grown in value over the last five years.

The study discovered there are around 5.5 million private rental properties currently within the UK rental sector. Based on current market values, their collective worth is estimated to be around £1.7 trillion.

The boost in overall BTL value over the last half a decade is likely due to strong house price growth, indicated by the amount of privately rented homes remaining similar across the UK in that time.

The CEO of Octane Capital, Jonathan Samuels, believes government legislation changes to the likes of tax relief, stamp duty and tenant fees has stymied the amount of privately rented homes. Samuels added: “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.

“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.”

Samuels also expressed hope that ‘whisperings of a higher rate of capital gains tax’ would not come to fruition, stating: “Any further increase could spur a reduction in available stock, causing the total value of the market to decline in the process.”

Octane Capital’s research revealed that London has the highest property values at a total of £500 billion from over one million private rental homes. The capital accounts for 19% of the UK’s total BTL properties.

Other regions with BTL values over £100 billion include the South East, the East of England, the South West, the North West and the West Midlands.

With the value of the BLT sector massively increasing over the last five years, now is a great time to buy property to let out. Using Auction House London’s property auction