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The volume of the UK property market will reach £1 trillion in the coming weeks

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The British “landlords” received £111,5 billion of proceeds from real estate transactions over the past 12 months. Currently, the private rental sector is continuing to grow by about 150,000 homeowners for the year added to the sector a “buy to let” .

At such growth rates, by 2020 the total number of homeowners involved in the sector will rise from £4.8 million to £5.5 million

Expansion of the sector will lead to an increase in absolute terms. The value of the real estate sector was estimated at March 2015 in the sum of £990.7 billion, 11% more than last year. That’s 43% of the whole of the UK property market. Meanwhile, 15 years ago, only 12.2% of occupied rental sector in the total volume of real estate in the United Kingdom.

 

Inflation in housing prices is also a cause of the growth of total capital in the sector. Inflation decelerated compared to the previous year, reaching its peak threshold inflation for the year, average housing prices grew by 7.5 % .

As at the end of March unit of real estate yields an average of £24221 income, which includes rental income and capital gains.

It is only £1,000 less than the average salary in the country.

In the whole country, from £111,5 billion that accrue to the investor for the year in March 2015, made up of £67,2 billion of growth capital and £44,3 billion of rental income. Although compared to September of last year, reaching its peak income at £137,5 billion, a significant drop compared to March 2014, when revenues amounted to £105.7 billion, this is a significant increase.

The total value of residential property in the UK will reach the value of £1 trillion. in the next 4 weeks, and by March 2016 it will reach the value of £1,07 trillion. The residential rental market is now experiencing a wave of popularity. Investors have noticed and appreciated the structural changes in the industry and the real estate market actively competes with the stock market. Benefits derived by investors are also going to expand the portfolios in the residential sector in the UK.

® Alamagan. 01.06.2015.

 

 

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