The changing face of buy-to-let

Buy to let has evolved a great deal since its inception in 1996, when specialist landlord loans became available to help investors obtain buy-to-let mortgages. 18 years later, the rental sector has grown substantially, with many more people finding the financial support they need to make a property investment with the aim of letting. Before lenders adopted a new approach buyers struggled to find the finances for rentals. The finance available was poorly suited to their needs and expensive, leaving people with very few options. It also made it incredibly difficult for buyers to build a portfolio of properties.

With change lenders started offering finance especially for landlords planning to buy to rent. The new finances spurred on the market, meaning buyers could take advantage of better interest rates and ensure their needs were met. The wider effect on the market was astonishing and dramatically improved the number of private landlords offering properties. There are now estimated to be as many as 4.9 million households renting homes largely thanks to buy to let.

With funding more readily available and flexible support to suit the needs of landlords the market boomed and continues to show growth, particularly in London. In 2012/2013 the private rental sector even overtook social housing to become the second largest market in the property industry, the first time this has happened since the 60s.

As well as the growth in the availability of private rental housing there has also been a marked improvement in the quality of accommodation and the happiness of tenants. Tenant satisfaction in the private rental sector is higher than in the social because of the care landlords take with their assets.

The buy to let revolution also changed how lenders, landlords and property agents worked together. Where there was once very little cooperation they now work almost seamlessly to ensure safe, quality housing is provided. Landlords have more support than ever before and tenants are reaping the benefits. We can help you with every aspect of your buy to let property investment in Newham or any other part of London, ensuring you make the best decisions.

Without buy to let the rental sector in the UK would be dramatically different. It had as much impact as the 1988 Housing Act that brought deregulation and more opportunities for property owners.