NLA rejects buy to let criticisms

Posted: 25 Jun 2007 10:41:23 GMT


            Property News - NLA rejects buy to let criticisms

The National Landlords Association (NLA) has refuted suggestions that the booming buy to let market has been to blame for a lack of first time buyers in the sector.

The National Landlords Association (NLA) has refuted suggestions that the booming buy to let market has been to blame for a lack of first time buyers in the sector.

It had been suggested that property prices have been pushed increasingly out of the reach of first time buyers because the buy to let market has become so strong and many landlords can afford higher prices than first time buyers.

However, John Socha, NLA vice president, has argued that the buy to let sector does not have sufficient presence in the overall property market to have a significant bearing on property prices.

Speaking to BBC Radio 4's Money Box programme, Mr Socha explained that 71 per cent of all houses in the UK are owned by owner occupiers.

"The private rented sector only owns 11 per cent of the market and the other 18 per cent is owned by the state, so in fact it's a bit like saying our activities are the equivalent of my local bakers putting up the price of bread in Tesco," Mr Socha said.


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