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.
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%.
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.