Rental property stock value exceeds commercial property
Published: 14-Jul-2008
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The total value of property employed as private rental accommodation now outstrips that of privately owned commercial property in the UK.
This is the claim of the National Association of Estate Agents (NAEA), which has calculated that the combined value of housing stock being rented to private tenants currently stands at £500 billion.
Consequently, it is now worth more than privately owned commercial property including offices, shops, hotels, factories, warehouses and leisure facilities.
The NAEA also issued an optimistic projection for the future value of private rental property, noting that house prices will "almost certainly" grow at a rate well above that of commercial property in the long term.
Factors set to influence this include the fact that supply of housing responds less quickly to demand than commercial property.
Previously compiled data from the NAEA showed that between 1981 and 2003 real house prices increased by 4.2 per cent per year on average.
During the same timeframe, values for commercial property fell by 1.2 per cent annually.
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