The rental market slumped at the end of the eighties when people were encouraged to buy their own homes.
With so much money to be made by owning a property many felt the age of renting was over.
But boom led to bust and with the recession came renewed demand for rental properties as people paused to take stock, scared by volatile markets and stories of negative equity.
The Housing Act of 1988 had deregulated the rental market, providing a legal framework which appealed greatly to potential landlords. The Act encouraged a surge in rental properties in time to meet the growing demand caused by the recession.
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, the year buy-to-let was born, 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.
18th Birthday Chocolate Pizza – with the number in the centre by Lee McCoy is licensed and edited under creative commons