That’s according to a new report from Shawbrook Bank
The value of the private rented sector in Britain rose 5.8% in the past year to £1.4 trillion, according to a bank’s report.
House prices have soared 9.9% between March this year and the start of the pandemic, helped by the stamp duty holiday, Shawbrook Bank said.
This included a 5.6% rise in the value of the average buy-to let property across the UK to December 2020, sitting at approximately £258,900 for each home.
But despite the rise in value, the size of the private rented sector shrank over the past year with some landlords choosing to leave the market, according to a report for the bank called The Changing Face of Buy-to-Let.
It also found that many tenants made a change, opting to return to their family homes during the pandemic, to leave cities in search of more space, or to make the most of the stamp duty holiday and become homeowners themselves.
As restrictions have eased, remaining landlords said demand has increased in the past 12 months by 42%, and two thirds said they were confident about the future of the property market over the next 12 months.
Around a third also said they are planning to buy another property in the coming year, especially as those not on the housing ladder are likely to stay in rental accommodation for longer.
The report found that half of renters say they expect to be renting for the rest of their life, with affordability one of the main reasons.