The Council of Mortgage Lenders (CML)have predicted that the buy-to-let property market value will exceed £1 trillion in 2015 as it continues to soar towards this level.
Are you a buy-to-let investor who is profiting? Or are you interested in joining this growing group of investors?
Almost £1 trillion in value (that’s 1,000 billion)
In 2014, the overall value of UK residential property wealth was assessed at £4.8 trillion by CML. “Owner occupiers” held £1.8 trillion of this wealth pot yet surprisingly buy-to-let investors held £990 billion.
This represents a 70% increase in this area of the market since 2007, when the financial crisis set in.
The rise is surprising, as these type of buy-to-let investment loans have only been available since the mid-nineties so growth in a short space of time has been signifiant and it continues to be the fastest growing part of the mortgage market.
“The value of the private rented sector was £990 billion in 2014 and, in all likelihood, it will exceed £1,000 billion in 2015.” CML
Low buy-to-let borrowings
Against the £990 billion in wealth value, borrowings are relatively small with almost £650 billion buy-to-let properties being completely mortgage free.