Buy-to-let helping renters, report states

08 2008
Due to the high demand of rental accommodation among students and those who want flexibility when it comes to their housing, buy-to-let investors are providing a valuable service, it has been argued.

Despite recent calls that the high number of private landlords has pushed would-be buyers out of the property market, a new paper from the National Housing and Planning Advice Unit (NHPAU) has concluded that buy-to-let has provided serious benefits and addressed a number of housing problems being faced in the UK.

For example, private landlords are willing to buy new-build properties, unlike many first-time buyers, thereby giving renters the opportunity to live in a new development, for example in city centres.

In addition, according to Assetz, renters usually target different types of properties than buyers, so there is no conflict of interests.

"Most rental households require one or two-bedroom properties, so this is the type of product most investors are buying," said the organisation's Stuart Law.

"First-time buyers are increasingly moving away from rental to purchase larger properties as their first proper home – another reason why investors are not competing directly with first-time buyers."
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