Nigel Terrington, chief executive of Paragon Group, Britain’s largest buy-to-let lender, on housing

“The UK market is undergoing a significant structural change. There is a material increase in tenant demand now and into the future, which is driving demand for buy-to-let landlords. On the demand side, there is a rising population, particularly in population groups likely to rent. Buyers increasingly use property as a pension. There is a fundamental shortage of housing that will not be addressed quickly. Interest rates are higher but they are more likely to act as a greater constraint on first-time buyers. Any weakness in house prices will be seen as a buying opportunity for landlords . . . The redemption rate [for our borrowers] has been slowing as landlords are keeping their properties longer. They do not buy like an equity. It is an illiquid asset – expensive to get in and expensive to get out. The average hold period is 16 years. If they hold on for the long term, they will not be affected by short-term issues.”

Jennet Siebrits, head of residential research at CBRE Hamptons

“Growth at this rate cannot carry on but we are not in a crash scenario. The difference between supply and demand is huge. For every nine wanting to buy, there is only one property. In 2008 house prices could be between 5 per cent and 7 per cent and London is certainly going to outperform for the foreseeable future.”

Stephen Hester, chief executive of British Land, on commercial property

“I believe that real estate markets are fairly priced . . . When people mean the top, it means things could go down. I don’t think the property market is likely to go down . . . Property is not going to surge again as it is at fair value. Property has taken a leap forward in the past two to three years, but there are still decent risk-adjusted returns.”

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