Since they were first launched in 1996, buy to let mortgages have notched up 25 years on the market as the year 2021 comes to a close. 2021 also marks a significant milestone for Total Landlord Mortgages parent company, Hamilton Fraser, as they celebrate 25 years of operation.

Landlords have rented out homes for centuries, but the boost that changed the industry was the buy to let mortgage. Launched in response to increasing demand for rental properties, coupled with rent deregulation in 1988, buy to let mortgages allowed individual landlords to respond to this demand and provided easier access to funds. This opened the way for more private landlords to invest in property.

The result, a quarter of a century on, is that 4.2 million homes are owned and rented out by an estimated 2.5 million landlords. But there are big challenges in store for 2022 as landlords grapple with the cost of energy efficiency upgrades and the outcome of the Government’s long-awaited Renters’ Reform Bill, which is expected to bring in some of the most significant changes landlords and tenants will have seen since the 1990s.

Bank base rates are still at an all-time low, call Total Landlord Mortgages today on 0333 224 8918 or request a call back to secure the best deal.

2021 – A year in buy to let

With the seasonal break approaching, Hamilton Fraser Total Landlord Mortgages reflects on a year in buy to let and looks forward to what the new year has in store:

  • January – Leasehold reform benefits landlords and millions of homeowners stuck with escalating ground rents and extortionate service charges, as the Government pledges to rein in developers
  • February – The Government launched its pilot mediation service for landlords and tenants going through the eviction process. The pilot has now ended, but you can still contact the Property Redress Scheme mediation service, which was also set up during the pandemic, for advice
  • March – Chancellor Rishi Sunak extends the stamp duty land tax holiday in England for three months (until June 30) in his spring budget
  • April – From 1 April, a law was introduced that states every private rented home in England must have an electrical safety report
  • May – The Queen gave her annual speech, laying out three key pieces of legislation for the property sector. Also this month, ‘breathing space’ regulations were introduced, increasing fear amongst landlords that they wouldn’t be able to pursue tenants who had fallen into arrears
  • June – Rightmove reported that the Government’s green dream of making millions of homes more energy efficient may fall flat due to one in six homes not being able to be refurbished to the required standard
  • July – The Government’s latest English Housing Survey was released, it showed that 83 per cent of private renters are currently happy with their homes, contradicting claims from housing charities about poor standards
  • August – Preston, Lancashire, is ranked the best city for buy to let with a yield of 2.98 per cent, data from an estate agency discloses
  • September – The stamp duty land tax holiday ended at the end of the month
  • October – Eviction deadlines in England revert to pre-COVID arrangements of two months’ notice for landlords and one for tenants
  • November – The Government’s plans to scrap Section 21 ‘no fault’ evictions are delayed until the spring, housing officials announce
  • December – Property professionals and industry pundits predict the next 12 months will see the average price of a home in England surge past the current record of £288,000
  • January 2022 and beyondContinuing double-digit growth in property values is expected. Rising home prices will add to the current 10 per cent annual growth in 2021, according to Nationwide’s house price index

The pandemic and government’s response continued to impact the economy and the private rented sector in many ways in 2021 – read more about the numerous changes to laws, rules and regulations in Hamilton Fraser’s annual round up.

Fears for interest rates as inflation rises in 2022

The stamp duty holiday spurred much of the growth and an exodus from city centres to larger homes with more land in the suburbs and beyond, as many switched from office commutes to working at home due to COVID restrictions.

Meanwhile, the Bank of England has held interest rates at the record low of 0.1 per cent since March 2020 and is resisting pressure to raise them to control inflation.

A poll of 50 economists conducted by news agency Reuters forecasts rates will not rise until the second half of next year unless inflation rages out of control.

The Bank of England’s target is two per cent inflation, but the figure stands at 4.3 per cent and is expected to rise before falling as the economy gets back on track after Brexit and COVID disruption.

With bank base rates still at an all-time low, has there ever been a better time to lock in some incredible rates? Call Total Landlord Mortgages today on 0333 224 8918 or request a call back to secure the best deal.

Read more about what is happening with the economy and what lies ahead in Hamilton Fraser’s Economic and property market update for 2022.


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