Landlords overlooked in latest Budget plans
Very rarely does the Chancellor’s Budget go by without facing any criticism. The latest is no exception as the buy to let industry voices its frustration following the exclusion of landlords and property developers from the new Help to Buy scheme.
Designed to help people struggling to get on or move up the property ladder, Help to Buy will offer a five-year interest free loan of up to 20% of the value of a new property on the condition the buyer can provide five per cent of the deposit.
This then works in tandem with “Mortgage Guarantee”, the second thread of the scheme which will see the Government invest a further £12bn as insurance to lenders who provide higher loan-to-value mortgages.
However the private rental market is left feeling rather disgruntled after the scheme failed to include buy to let mortgages and thus address the existing supply and demand imbalance within the private rental market.
GW LET’s John Jones comments:
“We fully appreciate why landlords may be feeling neglected by the latest Budget announcement. While the buy to let market has remained remarkably resilient during the last few years’, activity is still way down on pre-2008 figures. All in all landlords face the same challenges as homebuyers. It is disappointing not to have that recognised in the Budget, particularly as the demand for rental property still massively outweighs their supply.
“While there is undoubtedly a large group of renters who are keen to get onto the property ladder, it is important to remember there are also those who have embraced the property habits of Europe and America and enjoy the flexibility of renting.
“We are in agreement with our industry peers that the government has missed an opportunity here to boost the buy to let sector.”
Content correct at time of publication