Buy-to-let mortgages were introduced in 1996 following the realisation that standard mortgage products just didn’t provide the necessary scope that the market required.
During the mid-90s homeowners were generally hesitant to place their properties on the market as house prices were low so the demand for rental property was increasing. However, at the time mortgage agreements often included clauses that prohibited homeowners from letting out their properties so it was difficult for individuals not in the fortunate position of being cash buyers to consider the option of becoming a landlord.
Property industry bodies worked with financial lenders to develop a mortgage product specifically tailored to support the private rented sector (PRS) which was ultimately introduced on 24th September 1996.
Research suggests that the UK private rental sector was worth an estimated £1.33 trillion in 2021 with the sector have almost doubled in scale since the buy-to-let mortgage products were first introduced – there are circa 13 million private renters in the UK market at this time.
Challenges remain with the ever-increasing legislation for landlords, tenants and agents to keep abreast of and constant tweaking of the tax environment by the Government.
It pays to take a professional approach to the private rental sector and for existing and would-be landlords George F. White are able to provide assistance from initial property investment advice through to full management of your property portfolio.
Contact our dedicated property management team on 0333 920 2220 for a no-obligation discussion.