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Value of Buy-to-Let Could Reach £1 Trillion
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Value of Buy-to-Let Could Reach £1 Trillion
It has been predicted that the overall value of the buy-to-let market could hit £1 trillion in the near future.
The Council of Mortgage Lenders (CML) revealed that the total worth of the sector reached £990 billion in 2014 and is expected to continue increasing.
This value has grown 70% since the financial crisis of 2007.
The overall worth of residential property was £4.8 trillion last year, with £1.8 trillion belonging to homeowners and £990 billion to buy-to-let investors.
Landlord loans were also the fastest growing sector of the mortgage market, however, the scale of buy-to-let borrowing relative to investors’ asset worth was fairly minimal.
The amount of landlords with buy-to-let loans is very low, with just 19% of the whole property market accounting for these mortgages. Of the £990 billion total, almost two thirds (£643 billion) is mortgage-free.
