The bursting of the buy-to-let bubble isn't as imminent as expected, says Robert Jordan, president of ARLA.
He believes that the constantly evolving and increasing segmentation of the market and the consumer approach to protection for tenants will ensure this.
Jordan says: “When ARLA launched buy-to-let we started with what has become traditional buy-to-let. This is where a long-term investor looks to both maximise rental income and enjoy a capital gain.
“Now there is a new phenomena in the market, 'nest-egging'. This is when buy-to-let investors put down a fairly high deposit to acquire a residential investment property. Their expectation is to cover costs or even to live from time to time with a negative return. This is not a concern as the objective is to save with the help of rental income and make a long-term capital gain.”
Jordan also points out that when the chancellor finally introduced property investment funds, the entire psychology of vacant possesion changed and that there is a growing market in ready-tenanted buy-to-let properties.