Buy-to-let boom ‘unlikely’

The buy-to-let market is unlikely to see a boom on the back of falling house prices and low first time buyer demand, according to a group of leading economic commentators. Speaking at a debate today, senior figures, including the Council of Mortgage Lenders’ director general Michael Coogan, and Nationwide chief economist Fionnuala Earley, say they do not expect the market to shrink, but they also believe a boom is out of the question.

John Bakie, InfoOnline.co.uk - Tuesday 18th March 2008

“I think a lot of people will seek rented accommodation while they save the money to buy, but I don’t like to think of the market in terms of boom and bust and I expect it to remain steady,” says Coogan.

David Miles, chief economist at Morgan Stanley, agrees: “I think net new demand is unlikely to increase, despite the prospect of attractive yields, because capital is likely to depreciate in the short term. However, it’s too costly for those already in the market to get out, so I think most current investments will remain.” - full article