UK Personal Finance

The Association of Residential Letting Agents (ARLA) believes that the beginning increase of Private Landlords began when housing laws were amended so that it was impossible for tenancy agreements to accidentally become a sitting tenancy.

The initial idea of becoming a Private Landlord seems to be a satisfying idea among people of today, it can also be a very wise financial decision in the long- term period. What could be easier? Borrowing money cheaply, to buy a house or flat and then letting it out to a tenant, while you enjoy the benefits of the rent income and rise in property value.

This is apparently one of the modern concepts of today’s buy- to- let market that has resulted in an increase of Private Landlords. Buy to let borrowing hit record figures at the beginning of the year. The Council for Mortgage Lenders (CML) have confirmed that approximately 152,500 buy- to- let Mortgages were taken out at the start of the year, 17% more than the previous six months. In 1999 figures show that only 1% of mortgage lending were buy- to- let borrowers, which has now increased to 8 %. For lenders this has creating a new area of business.

The majority of private landlords have seen good returns and have experienced growth in their property amount.