Spokesman Malcolm Harrison said a slowdown in the residential buying and selling market will cause “more rental demand – and that always means the case of a thriving rental sector”.
He added that as most buy-to-let buyers have taken out fixed-rate mortgages there is little chance that higher interest rates will adversely affect the sector, adding that a “high deposit” and “conservative rental expectations” which make up a part of most buy-to-let propositions meant that the sector has a “much better credit record” than the residential market.
As a result, he said, there was good cause for optimism in the sector.
This week the Royal Institution of Chartered Surveyors said there was a one in ten chance of there being a crash in the housing market reminiscent of that which occurred in the early 1990s.
© Adfero Ltd
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