The value of property owned by landlords in Great Britain is set to break the £1 trillion pound barrier next year, according the Kent Reliance’s inaugural Buy-to-Let Britain report.

The total value of property in the private rented sector in Great Britain has now reached £930.7bn, climbing by £109.5bn in the last year alone. From its recent trough in 2009, the sector has gained £302.5bn. In fact, the financial crisis had little impact on the sector. Even since the 2007 peak of the property boom, it has risen by more than quarter of a trillion pounds.

The longer-term growth is even more impressive, with the value of landlords’ assets now more three and a half times its level at the start of 2001 (£262.1bn).

Resurgent property prices have been a key driver in the increasing value of the private rented sector but long-term growth has been underpinned by very strong demand from tenants wanting rented homes. Since 2001, the PRS has expanded by nearly two million households – increasing by 71.4 per cent since the start of 2001.

Andy Golding, chief executive of OneSavings Bank, comments: “Landlords have benefited from the recovery in house prices since 2009, which has pushed their wealth to within touching distance of £1 trillion. But as the sector’s value marches upwards, the main impetus has come from the growth in the number of households as demand from tenants continues to climb.

“Private renting isn’t a flash in the pan, and 80 per cent of new households since 2001 have been accounted for in rental properties. While for many it is a lifestyle choice, the ongoing squeeze on wages, rising house prices, not to mention difficulty in obtaining sufficient mortgage finance is accentuating this shift in tenure from owner occupation to long term renting. In many ways, Britain is becoming a more normal nation, much more like its continental neighbours as a result.”