Buy to let

Buy-to-let is a British phrase referring to the purchase of a property specifically to let out, that is to rent it out. A buy to let mortgage is a mortgage specifically designed for this purpose.

History

Prior to the 1980s, the number of private individuals who became landlords was very small. Buying property to rent was seen as the preserve of professional landlords and persons who were sufficiently wealthy to pay cash or having sizable deposits enabling them to obtain commercial style mortgages. The modern style 'Buy-to-Let' mortgage, wasn’t available and the possibility of purchasing property as a means of funding a retirement income did not occur to most people. The infrastructure of loans, advice and information was not available.

The critical change came with the Housing Act of 1988 when the Assured shorthold tenancy came into being. This gave potential landlords and lenders the confidence that tenants would only reside in the property for a fixed period.

Since the mid- to late 1990s, Buy-to-Let has grown strongly. According to the Council of Mortgage Lenders, lenders advanced more than 1.7 million Buy-to-Let loans between 1999 and 2015. Over the past 12 years the private rented doubled in size. Buy-to-let mortgage balances outstanding recently grew to more than £200 billion – equivalent to the gross domestic product of Hong Kong.

Renting

Renting, also known as hiring or letting, is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership.

Reasons for renting

There are many possible reasons for renting instead of buying, for example:

To Let

To Let is the debut album from Australian roots musician Xavier Rudd. It was released in 2002.

Track listing

References

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