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Value of Buy-to-Let Could Reach £1 Trillion

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.

 

 

 

 

 

 

Em Morley:
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