Size of the buy-to-let investment market

Size of the buy-to-let investment market

0

Market Size

The UK’s housing stock is worth £5.75 trillion, 40% larger than the total market cap of UK shares listed on the London Stock Exchange. The private rented sector (PRS) equates to £1.2 trillion, or 1.3 times the size of the entire UK commercial property market.

The Buy-to-let sector is much larger than the commercial property market
The size of the Private Rented Sector (Buy-to-let) market compared to the main investment sectors.

UK PRS – European Comparison

The chart below shows the UK PRS sector compared to other European countries. It shows that Switzerland and Germany have a disproportionately large PRS sector when compared with the rest of the former eastern block / communist states. Slovenia, Hungary, Slovakia, Romania, Bulgaria and Estonia all have an extremely small PRS sector as a legacy of the state ownership of property assets.

Ignoring these outliers, the UK PRS at 18.5% is close to the average for Europe at 16.0%.

Private Renting In Europe

Interestingly out of 11 countries studied by London School of Economics and the University of Cambridge, the UK was the only country to show continued growth within the PRS sector.

Sources:
http://www.londonstockexchange.com/statistics/home/statistics.htm
http://www.dmo.gov.uk/index.aspx?page=Gilts/Portfolio_Statistics
http://pdf.savills.com/documents/Total%20Value%20by%20Tenure.pdf
http://www.bpf.org.uk/about-real-estate
http://www.lse.ac.uk/geographyAndEnvironment/research/london/pdf/The-Private-Rented-Sector-WEB[1].pdf
www.communities.gov.uk/documents/housing/xls/table-104.xls