Strong investment in the housing market by investors using buy-to-let mortgage finance continues to push up the price of houses beyond the reach of first time buyers.

Savills UK Residential Research Bulletin Autumn 2004 describes why the market conditions are good for investors. The so called ‘buy-to-let’ boom at the time was more of a finance boom than a property boom – every 2.5 buy-to-let loans resulted in just one new rental property entering the rental market.

Interview with Jacqui Daly

Key facts:

Job title: Director

Specialisation: Residential Investment

Years at Savills: 9

About Jacqui: I joined Savills Research in 2005 with a PhD in Real Estate, having previously worked in the research team at DTZ and at the College of Estate Management at the University of Reading. I have a keen interest in the residential investment market and develop investment strategies for investors, developers and housing associations. I’ve undertaken research studies for central and local government and industry bodies. I am an active member of the British Property Federation’s Residential Committee which has promoted the need for a large scale professional rented sector.

Q How much had been invested in buy-to-let in 2004?

A £46 billion had been invested yet the rental market remained small at 10% of households

Q Why do we need a large rented sector?

A To improve labour mobility and reduce volatility in the housing market. First time buyers were increasingly priced out of the market as house prices raced ahead.

Q What was the Government’s attitude to the rental market?

A The Government were considering introducing Property Investment Funds to increase investment in the sector through indirect investment routes in order to diversify and spread risk.

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Taken from
25 Years of Savills Residential Research (1989 - 2014)