Many people blame the buy-to-let market for the current housing boom, despite the fact that it accounts for only 7 per cent of the current home loans.  They also do not look to the fact that the UK has a 30 per cent letting rate and 70 percent homeownership. This is grossly unbalanced compared to the rest of the world, which broadly experiences a 50/50 division between properties for let and privately owned properties.

Many claim that the increase in the buy to let market in the UK has led to an increase in the quality of housing in the rental sector.

The National Landlords Association (NLA) said that investors who hold a Buy to Let Mortgage are not treading on the toes of first-time buyers, because they typically buy more expensive properties.

This is because the homes that first-time buyers purchase are cheaper, older, and less likely to increase in value. The buy-to-let investors need properties that will increase in value, and which banks will be willing to release 100 per cent of the equity in a combination of mortgage and secured loans.

NLA spokesperson Simon Gordon noted.

“There is no automatic link between being a property that a first-time buyer will be able to afford and a buy to let property. Particularly if it’s in central London it’s going to be an expensive flat, which is not necessarily the type of property a first-time buyer will be purchasing,” commented Mr Gordon.

“From the private sector point of view you have got a situation where some buy to let landlords are letting out very high quality property. This is obviously very good news for the private renting sector,” he added