Landlords are selling properties to other landlords in a buy-to-let sector that is here to stay, Katie Davies, executive director of IMLA told delegates at FSE London yesterday.
She said that buy-to-let is for the long-term and not people just going into it for quick money.
Davies said: “I think it’s an essential part of the private rental sector and will stay. Until we build those 300,000 houses, we’re going to need buy-to-let landlords.
“The changes will take a long time to come in. The evidence we have is landlords are selling to other landlords and not coming into market again.
“The government wanted to rebalance landlords and first-time landlords but I don’t think that’s happened.
“We keep saying be careful what you wish for, if you hit the landlords too hard, you’ll absolutely mess up the private rented sector and that’ll help nobody.”
Jackie Bennet, director of UK Finance, said that after all the many tax, regulatory and PRA changes, the market is very depressed.
However she added: “Remortgaging is still very strong and we’re seeing more landlords move into the corporate landlord space, where there’s potential opportunity.”
FSE London took place at Old Billingsgate in the City of London.