Buy-to-let investment 'provides market stability'

The buy-to-let sector has brought stability to the housing market over recent years, preventing prices from going into reverse and creating a healthy economic environment.

This is the view of Stuart Law, the chief executive of the property investment advisor Assetz, who insists the suggestion that buy-to-let investors are pricing first-time buyers out of the housing market is false.

Speaking to BBC Radio 4''s Today programme he insisted buy-to-let investment was a "symptom, not a cause" of the problems first-time buyers are experiencing.

He said the buy-to-let sector was actually aiding those unable to purchase property as a result of rising prices by meeting the demand for quality homes at affordable rental rates.

"Buy-to-let investors have provided great stability to the property market over the last ten years in providing a huge base of property available to rent," he stressed.

New research from Alliance and Leicester shows that many first-time buyers are being forced to rely on their parents to help them get onto the property ladder, receiving over £20,000 on average in financial support from mum and dad.

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