The value of landlord property near the £1 trillion level with income of £112 billion as the buy-to-let sector continues to grow.

A total of £111.5 billion in rental income is generated from buy-to-let landlords which is likely to increase further as a report from Kent Reliance has predicted growth in the private rented sector from 4.8 million to 5.5 million households in Britain by 2020.

Buy-to-let landlords are benefiting with 77.4% of all new builds going to the rental market at the expense of struggling first time buyers and home movers.

By the end of March the total value of property landlords owned had increased by 11% over the year to £990.7 billion according to data from the Office for National Statistics.

The sector by value is 43.1% of the UK stock market up from only 12.2% back in 2000.

Landlord gains are increasing

Annual returns landlords have experienced totalled £111.5 billion to March 2015 of which £67.2 billion were capital gains and £44.3 billion in rental income.

This figure was £5.8 billion more than this time last year at £105.7 billion.

Even so it was lower than the recent peak of £137.5 billion reached in September 2014 as capital gains reached a seven year high.

This was helped by house price inflation at 7.5% over a year although this is lower than the peak reached last year.

On average buy-to-let landlords generated £24,221 in rental income and capital gains per property for the year ending March, more than the average UK salary of £22,044 according to a recent KPMG report.

With greater competition for properties and without family help to upsize, remortgage buyers may have to stay in their existing home and continue saving more for a bigger deposit.

Older homeowners with considerable value in their property can avoid downsizing with the equity release buyer access to cash using a lifetime mortgage to consolidate debt or for home improvements.

Booming buy-to-let market

According to Andy Golding, chief executive of One Savings Bank, the buy-to-let market has come of age and moved from a niche asset 15 years ago to a sector that can rival the stock market.

With a continued gap between increasing demand for homes and limited supply of new build homes, buy-to-let landlords will benefit from the strong rental market.

For first time buyers lenders require high loan to values requiring large deposits to secure the best rate deals and this results in higher demand for rental accommodation.

The cost of buy-to-let mortgages is reducing with bigger choice helping to reduce the cost to landlords and improve the return on investment.

Lenders are also catering for buy-to-let remortgage buyers and second charge options allowing experienced landlords to build their portfolios to meet demand.

The private rented sector is expected to surpass £1 trillion in the next month.

What are your next steps?

Call our LCM mortgage brokers if you are a buy-to-let landlord with a property, remortgaging and want the best mortgage deal, buying your first home or you are planning to move home.

For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your home to spend on anything such as improve your quality of life or even help your children start or expand a business.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage monthly cost calculator, property value tracker chart and equity release calculator.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.