Buy-to-let dead dismissed by NLA

The National Landlords Association (NLA) has dismissed reports from housing market commentators that buy-to-let is dead after the nationalisation of Bradford & Bingley.

The NLA points to a wide range of reasons why the buy-to-let market will survive the loss of the nation’s largest buy-to-let mortgage lender.

The numbers of landlords that have mortgages on their let property are about 30 per cent, leaving the majority of private landlords untouched by the turmoil in the buy-to-let mortgage market.

Also the expansion of the EU and the Governments own predictions about immigration over the next 30 years are set to increase the UKs population to above 70 million. The resulting increase will continue to push the demand for rental accommodation.

The student population is also growing, with some 2.5 million students now in university education, with the majority living in rented accommodation rather than halls of residence.

Also the provision of social housing has lagged behind the need for housing for several years, coupled with the end of cheap credit for mortgages, more and more families have to rely on the private rented sector for their housing solutions.

Finally the majority of landlords are in it for the long term gain, generally holding property for an average of 15 years, not the short term profits from capital gains. It is highly unlikely that demand for rental properties would diminish in a downturn.

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01/10/2008 10:28:16