RLA cools talk on buy-to-let recovery

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The Residential Landlords Association (RLA) has called for a more rational perspective to be taken on recent speculation over the recovery of the buy-to-let market.

Statistics from Mortgages for Business suggested that the percentage of buy-to-let mortgages sold had increased in proportion to remortgages since January.

The figures came after statistics from the Young Index showed an increase in buy-to-let investors planning to purchase property outside London, prompting conjecture that investors were returning to the market.

However, Alan Ward, chairman at RLA, suggested that the simple percentages may be misleading and expressed concern that the issues which led to the collapse of the market have yet to be resolved.

He said: "The question is more about the cost of the products and the serviceability of the borrowings from rent, and not from capital growth, which is what burst the bubble of buy-to-let."

Mr Ward also expressed his doubt that the buy-to-let market would ever return to its previous levels.

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