ARLA and a small select panel of lenders including Paragon Mortgages,
were instrumental in recognising the growing demand from private
landlords for specifically tailored mortgage finance to help meet the
rapidly growing demand for private rented property.
Over the past 18 years the buy-to-let market has developed
considerably, supporting growth in the UK’s Private Rented Sector (PRS)
whilst driving up quality and improving choice and competition. Today
the PRS is the second largest housing tenure in the UK – over taking the
social housing sector for the first time since 1961 in 2012/2013.
In 1996 there were 2.4 million households in the PRS – 18 years later
this has more than doubled to 4.9 million. At the same time the sector
has seen the fastest rate of improvement in the quality of accommodation
of all three major tenures, and tenant satisfaction in the PRS now
exceeds those in the social rented sector.
The profile of tenants living in the PRS has also changed since 1996,
with more families living in private rented homes. In 1996, 13% of
tenants living in the PRS were families – this has now increased to 20%.
John Heron, managing director of Paragon Mortgages, said: “The
buy-to-let market has been a force for good for the wider UK housing
market. Before the development of buy-to-let landlords had few options
when considering how best to finance a rented property. The finance that
was available was expensive and poorly matched to the customer’s needs.
It was particularly difficult for new landlords to start to build a
portfolio.
“Buy-to-let has changed all this. It enabled landlords to access
finance that was better designed to meet the specific needs of the
rental market at much more competitive interest rates and thus helped
expand quality and choice in the PRS.
http://www.landlordtoday.co.uk/news_features/Buy-to-let-celebrates-18th-birthday
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