Property Value Growth in England Spells Good News for Buy to Let Investors

The values of homes across England have increased by 80 per cent in the past decade. The rental market specifically has grown 105 per cent to represent a staggering value of £1.5 trillion, with £529 billion of that in London alone. With growth like this in the rental sector, it would seem those investing in buy to let property are set to win hands down.

According to property platform Boomin, the values of homes in England have seen an increase of 80 per cent over the past ten years. Boomin found that this growth has mainly been fuelled by the value of homes in the rental market, more so than an increase in the value of homes owned.

Boomin’s research was based on an analysis of the residential property market across England. It looked at the total number of owner-occupied and privately rented properties, the total value of each market, and how this has altered over the past decade.

The research reveals that the combined ownership and rental markets represent a total value of £7.4 trillion, with the entire market having risen by 80 per cent in value over the past ten years. The ownership market saw a rise of 75 per in value and is now worth £4.6 trillion, whilst the bigger rise was in the rental market at 105 per cent, making it now worth £1.5 trillion.

Regional housing market values

Looking at the housing market from a regional perspective, London is home to the highest value combined market, at £1.8 trillion, as well as the most valuable rental market at £529 billion. The biggest home ownership market sits in the south east of England, representing a value of just over £1 trillion.

Boomin found that out of the whole of the UK, London is top for housing market value change, having seen a total increase of 97 per cent over ten years. The rental market in particular grew by 124 per cent in London, beating all other regions.

CEO and founder of Boomin, Michael Bruce, said: “Many are now opting to rent for longer periods and until much later in life as the ever-escalating cost of buying prices them out of the market. So, while the housing market still reigns supreme in terms of total size and value, there has been a far greater level of value growth across the private rental sector to accommodate this new way of living and this trend is apparent across all regions of the nation.

“So those investing in property over the past decade have won hands down, but property investors and landlords especially it seems. London too is the big winner. Despite the stalled market in the capital of late, its overall momentum as a property market powerhouse means that it has seen the biggest value improvements in the last decade regardless.” 

Rental market growth on the rise: time to invest in buy to let property?

With rental market growth on the rise, and demand for rental property at an all-time high, could now be the right time to either venture into property development, or expand your rental property portfolio?

If so, you’ll need to think about how you’ll protect your investment. A guaranteed rent scheme from homes2let could help you do just that.

At homes2let, our rental property management service offers the added benefit of a guaranteed rent scheme. This is a scheme designed to boost your yield, whilst reducing your investment risk by guaranteeing your monthly rental payments, even during void periods.

Why not talk to the friendly team at homes2let to discover more about our service? We have particular expertise in the south London buy to let property investment market, and are ready to help you get the most out of your buy to let, without the everyday hassle. Please feel free to get in touch today.