IDEAS home Printed from https://ideas.repec.org/a/taf/intjhp/v5y2005i3p301-326.html
   My bibliography  Save this article

The Impact of Buy to Let Residential Investment on Local Housing Markets: Evidence from Glasgow, Scotland

Author

Listed:
  • Kenneth Gibb
  • Christian Nygaard

Abstract

The advent of the 'buy to let' (BTL) phenomenon in the UK, apart from producing a new wave of individualized rental market investment, has been widely judged to be a speculative and destabilizing force in the housing market. This paper provides a detailed empirical investigation of new residential investment in one city (Glasgow) where BTL has made a relatively large impact. In seeking to overcome data problems, the study employed qualitative (expert interviews and a landlord survey) and quantitative methods (census, the Register of Sasines, standardized house price information and modelling thereof) in order to assess the nature and scale of BTL, the motivations of investors and its impact on the private housing market. The evidence suggests that while Glasgow is in many respects different to rental markets elsewhere in the UK and although the investment has thus far largely occurred in a benign environment, the context for future investment, on balance, looks sustainable (i.e. favourable changes to pension planning law and the maturing market for BTL). Long-term market impact is an empirical question that depends on the specific interactions of market niches or segments (i.e. the first-time buyer market for apartments) with potential buy to let investment. Our conclusion, to borrow a Scottish legal term, is that BTL induced volatility is 'not proven'.

Suggested Citation

  • Kenneth Gibb & Christian Nygaard, 2005. "The Impact of Buy to Let Residential Investment on Local Housing Markets: Evidence from Glasgow, Scotland," International Journal of Housing Policy, Taylor & Francis Journals, vol. 5(3), pages 301-326.
  • Handle: RePEc:taf:intjhp:v:5:y:2005:i:3:p:301-326
    DOI: 10.1080/14616710500342218
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/14616710500342218&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:intjhp:v:5:y:2005:i:3:p:301-326. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/REUJ20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.