Speaking at the Sesame Symposium in London, Lloyds Banking Group director of intermediaries Mike Jones, Nationwide executive director of group distribution Matthew Wyles and Barclays intermediary business director David Finlay all defended the buy-to-let sector.
They said that the buy-to-let and first-time buyer sectors are distinct from each other and not in competition.
Matthew Wyles, group distribution director of Nationwide, said: “Quite unfairly, some commentators have blamed first-time buyers’ inability to buy on buy-to-let investors, which is rubbish.”
He highlighted that the fact that house prices are not rising while rents are was a sign that rental demand is outstripping that to buy, with people choosing to rent because of a lack of equity to buy, strict criteria or a reluctance to commit to buying.
Jones said Lloyds expects the buy-to-let sector to increase 20% in 2012 compared to 2011, but maintained that it is “not crowding out” the first-time buyer sector.
Finlay added: “Buy to let and first-time buyers are two separate markets. There is a social aspect to this, as young people are more likely to move around and are making a rational decision to rent. We see potential first-time buyers choosing to move into the owner-occupier market later in life.”
