The rental market has been revolutionized by Buy-to-let, driving the standards up and the choices for consumers Paragon Mortgage’s managing director claimed. At the Council of Mortgage Lenders conference today John Heron claimed buy to let is an attractive alternative asset for property investors. As chairman of the conference in his opening speech he said that when we see what has been achieved over the last 15 years we see an industry be justly proud.
The private rented sector is a valuable contributor to the UK economy by facilitating mobility and flexibility, provides income to thousands of businesses, helps to support a number of industries like maintenance companies and letting agents, helps to oil the wheels in the housing market and makes large contributions to the public purse quite well.
He claimed that a major role was played by buy to let providing the financing needed to fund standards and improvement in choice. Buy to let had showed its resilience throughout the credit crunch. After the worst economic recession for the past 60 buy to let has been very tested to its limits but proved its resilience with the credit performance is every bit the quality of prime residential.
He said the industry is at a critical crossroads in its development as they face challenges as to way housing is viewed. Based on the government’s economic forecasts and household formation projections it is estimated that 4.1m households will be in the private rented sector before the end of 2016.
The existing stock of rented property is already under loads of pressure and there needs to be a major expansion in the amount of privately rented property in order to ensure the sector is able to cope with the amount of renters that are in the pipeline.