It is designed to stimulate the growth of the Private
Rented Sector by encouraging private investors to take the opportunities given by low,
highly competitive, interest rates and the reasonable certainty of sustained capital
growth over the coming years.
Historically, buyers of property to let have been
surcharged or forced to borrow at commercial rates and potential rental income has not
been taken into account for servicing the borrowings.
Now, the panel of lenders supporting the Buy-to-Let
scheme have brought their interest rates into line with the rates for owner occupation and
take rental income into account for servicing the loan. This policy switch has been
encouraged by the knowledge that professional letting and property management agents will
be involved in the selection of suitable properties for the rental market, in the
selection of tenants and in the management of the properties. This enhances the
creditworthiness of Buy-to-Let propositions.
Through some 1,200 ARLA member offices, the lenders have
a countrywide network of experienced lettings agents who comply with the ARLA Codes of
Practice and the ARLA training and qualification requirements in letting and property
management.
ARLA members include the national chains, regional
multiples and specialist independents. Members’ companies are covered by the ARLA
Fidelity Bond which is linked to required client accounting procedures and high levels of
professional indemnity cover.
Through these agents, and through their own branch
networks and their links to independent financial advisers, accountants and family
solicitors, the Buy-to-Let panel of mortgage lenders are bringing a new impetus to the
Private Rented Sector and an investment opportunity, as attractive as commercial property
or gilts, for private individuals to add to their investment portfolios and to consider
for their own private pension planning.
