While clarifying the definition of buy-to-let eight years after its inception, Robert Jordan, president of ARLA, says it is a private enterprise that fulfils the social need for choice in housing.
He adds: “It is about fair returns and quality accommodation, not get-rich-quick schemes.”
John Heron, chairman of the ARLA buy-to-let panel and managing director of Paragon Mortgages, regards buy-to-let as a long-term enterprise.
He says: “Property speculators buy and sell quickly, are price inflation-driven, have no real interest in tenants and should not be given access to buy-to-let mortgages.”
ARLA says the future is promising for buy-to-let as it has strong defensive qualities in a soft housing market with the need for rented properties expanding and the number of households set to outstrip the number of properties available.
Responding to suggestions that some parts of regulation impinge on buy-to-let and that lenders should have appropriate cover in place, Michael Bolton, director of mortgages at BM Solutions and an ARLA panel member, says: “There are concerns over the ambiguity of buy-to-let regarding regulation. The general consensus is that it should be regulated. BMS treats all buy-to-let cases as if the area is covered by regulation.”