Buy to let 'only sector creating new homes'

14 June 2010

Written by David Whittaker

The buy to let sector is the only one growing quickly enough to meet demand, one organisation has said.

Alan Ward, chairman of the Residential Landlords Association, has claimed that the private rented sector is essential to the creation of new homes and that the availability of tenants is vital to the housing market.

"If landlords aren't buying property, then the general standards of property will deteriorate," he explained, as portfolio investors will typically make improvements when they first purchase new assets.

This follows research by Kensington which revealed that almost two-thirds of tenants leasing through the private rented sector are unlikely to become homeowners in the next five years.

Mr Ward also warned that with social rented homes not being constructed quickly enough, demand for housing cannot be met without the service that buy to let landlords provide.

Therefore the government needs to be aware of the "devastating" effect that the proposed rise in capital gains tax could have on the industry, as well as the importance of the sector to the supply of property as a whole.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.