Home » Landlords » Help to buy no problem for landlords

Help to buy no problem for landlords

Private landlords are unworried about the affect the Government’s Help to Buy scheme will have on the private-rental sector, according to latest research from the National Landlords Association (NLA).

The new figures show that just one in five (21 per cent) landlords say they’re worried about the impact of Help to Buy on the private rental sector, while only 15 per cent say they’re worried that it will have a detrimental effect their own lettings business.

More than 2,000 offers have been made using the Government’s new home ownership initiative, supporting a reported £365 million worth of mortgages. This has caused concern among some that the scheme might affect demand for private rented properties.

Richard Lambert, Chief Executive Officer at the National Landlords Association, said:

“It’s perhaps too soon to predict whether Help to Buy will have any real impact on the level of demand for private rentals, but these findings seem to confirm our belief that it will only affect the margins of the private-rented sector and that it doesn’t present a major concern for landlords at large.

“Much of the debate around Help to Buy is currently centred on the whether the scheme will create another housing bubble. However, this conversation is itself driven by the much bigger issue at hand: the fact that there are simply not enough homes for people, regardless of whether they want to rent or buy.

“While this is still the case the private-rented sector will play a vital role in meeting the housing demand and in the medium, if not long, term it is likely that renting for longer periods will become a normal part of our housing biographies. As such, the priority for the NLA is to ensure that rented homes are both enjoyable places to live and viable places to invest”.

Have your say on this story using the comment section below

One thought on “Help to buy no problem for landlords

  1. Leaders says:

    Some landlords may be concerned that Help to Buy will have a negative impact on rental demand because it will result in more people moving from renting to home ownership but we do not believe the effect will be as dramatic as that. For a significant number, house prices are much too high and a 5% deposit is still an insurmountable barrier. For many others, renting is a lifestyle choice. In a recent survey of over 5,500 tenants, we found that 40% choose to rent because they like or need the flexibility of renting. 10.5% were renting whilst between owning homes and 8% did not want the responsibility of home ownership. 5.5% were renting whilst letting out their own home. There are many reasons people choose to rent which Help to Buy will not change.

    Help to Buy is likely to be of most benefit to existing home owners looking to move up the ladder to a larger home. In helping these buyers to move, the scheme will free up the properties they are vacating, many of which will be suitable not only for first-time buyers but also for investor landlords. This will have a positive effect on the lettings market by improving supply for tenants.

Comments are closed.