PRS stock exceeds £1 trillion.

Posted on Saturday, January 17, 2015

The total value of private rented sector (PRS) housing in the UK has exceeded £1 trillion for the first time. 

This is according to the latest research from Savills, which revealed PRS stock has risen in value by 17 per cent over the past year and 57 per cent since 2009. Privately rented homes now number 5.4 million, which represents an increase of 1.2 million over the past five years and means the sector outnumbers social housing by 700,000 properties.

Overall, the total value of homes in the UK has reached £5.75 trillion, up £543 billion from 2013 and £986 billion over the last five years. Owner-occupied housing remains the dominant force in the market, accounting for 15 million households, with a value of £3.9 trillion. Savills said this is split evenly between mortgaged homes and those owned outright.

The number of properties owned without a mortgage has increased by 437,471 over the past five years, rising to a total of 8.3 million. In the same period, homes owned with a mortgage have dropped by nearly 800,000. Savills said the impact of the financial crisis and the resulting constraints on mortgage lending is behind this. 

London and south-east England account for a growing share of total property worth, with a combined value of £2.5 trillion, which is not far from half of the UK's overall total. Some £1.48 trillion of this is based in London, representing growth of £247 billion since 2013 and 61 per cent over the past five years.

All UK regions saw the value of their housing stock increase in 2014. The majority have seen a rise over the past five years, with the exception of the north-west, Wales, the north-east and Northern Ireland.