Buy-to-let was officially launched by the Association of Residential Letting Agents on 24 September 1996 at the RAC Club, Pall Mall.
The launch was an industry-wide initiative and included six founder lenders, including Paragon Mortgages, Alliance & Leicester, Clydesdale Bank, Halifax Mortgage Services, NatWest Mortgage Services and Mortgage Express.
Industry bodies were also involved including the Council of Mortgage Lenders.
Nigel Terrington, chief executive of Paragon Group, said: “Buy-to-let has galvanised the rental market over the past 15 years, whilst providing an attractive asset class for property investors.
“Buy-to-let finance was the catalyst for the revitalisation of the modern private rented sector.
“The flow of fresh capital modernised a tired and decaying sector, driving up standards of accommodation and choice for tenants.”
Terrington said that many would argue that the PRS would have died without buy-to-let.
“It had fallen to around 7% of all housing by the early nineties and there was a lack of finance going into the sector,” said Terringon.
“The PRS now provides a home for nearly one in six households and its importance will increase in future years as population growth and housing completions diverge.
“More people are choosing to live in rented accommodation and we must ensure that they have a PRS that remains fit for purpose. The future strength of the buy-to-let market will be central to that.
“The PRS makes a great contribution to the UK economy; it facilitates labour mobility and flexibility, provides an income to thousands of small businesses, supports a number of associated industries, such as letting agents and maintenance companies, oils the wheels of the housing market and makes a great contribution to the public purse.”
