Much has been made of the implications of the 2004 Housing Act, with the introduction of Tenancy Deposit Schemes, Houses in Multiple Occupancy (HMOs) legislation and the Residential Property Tribunal Service, all said to have put landlords off the sector.
However, at ARLA’s annual conference, it was claimed the legislation had brought many benefits to the market.
Lawrence Greenberg, chief executive of the Tenancy Deposit Scheme, said: “Tenancy Deposit Protection, with its associated Alternative Dispute Resolution, saves agents the deep frustration of trying to mediate between entrenched landlords and tenants.”
It was also argued that the success of the buy-to-let sector should not be made the scapegoat for the affordability crisis among first-time buyers.
Professor Michael Ball, Professor of Urban and Property Economics, University of Reading Business School, commented: "BTL has increased the size of the private rented sector and extended the alternatives to both owner-occupation and social housing. The only way to reduce prices is to build more houses that people actually want to live in and in places where they want to live."
Jon Burridge, managing director of Quantum Mortgage Brokers, said: “Legislation has helped the buy-to-let market. HMOs will grow as licencing will help get tenants in and keep the properties in the sector. The buy-to-let market has had a major impact on the availability of one and two-bedroom properties which would usually go to first-time buyers. Ultimately though migration and lack of homes are also massive factors.”
