Rental market 'has not come off rails' - buy to let mortgages

02 October 2008

The National Landlords Association (NLA) has spoken out on the current state of the buy to let mortgages sector, denying that it has "come off the rails".

Several commentators have expressed negative views of the buy to let market following the nationalisation of lender Bradford & Bingley.

However, the NLA was quick to come to the industry's defence, claiming that there is still much potential for buy to let investors.

It argued that increasing immigration and student numbers will lead to rising demand for rental accommodation.

There has been almost no increase in the amount of social housing available, so people are looking towards the private sector for solutions, it added.

Spokesman Simon Gordon said: "The cautious and mature investor who has bought the right property in the right location will be seeing an increase in rents and can expect demand to keep climbing."

Meanwhile the Council of Mortgage Lenders recently praised lenders for attempting to maintain a flow of products into the market despite difficult conditions.