95% LTV mortgage scheme ‘sucking tenants out of the rental market’
Hybrid lettings agency says 18% of landlords report losing tenants to the HM Treasury scheme, which is due to end in December.
A leading hybrid lettings agency says the government’s 95% LTV mortgage guarantee scheme has driven huge numbers of tenants to leave the PRS and become homeowners.
Accommodation.co.uk, which launched as a hybrid letting agency two years ago, now has self-employed agencies all over the UK, says just under 18% of landlords it canvassed reported losing tenants to the HM Treasury initiative.
Announced by Rishi Sunak in April, the scheme is for all homes for sale under £600,000 bought by first time buyers and will run until the end of the year and be limited to £3.9 billion.
Over a third of landlords told the agency they were experiencing difficulties sourcing properties to purchase as competition has increased during the current housing boom.
The data comes from the agency’s new National Landlord Index which it claims is a unique arbiter of landlord and tenant sentiment rolled into one.
Aaron Short (pictured), founder and CEO at Accommodation.co.uk, says: “At Accommodation.co.uk we are always listening to our landlords and tenants to understand the needs of the market and this is why the National Landlord Index is so important.
“Knowing how the market is impacting on UK landlords and tenants gives us vital information to really understand the future of the lettings market and ensure this is mirrored in our offering.
“We have been at the forefront of updating this archaic industry and we believe our award-winning model offers tenants and landlords the best solution in the current market.”
Read more stories about Accommodation.co.uk.
The Government’s 95% LTV scheme for FTB’s is again an example of tinkering with the mechanics of the housing market, I wish the mandarins in Whitehall would take 10 minutes and ask agents of the ‘reaction’ to any move they make. Helping FTB’s is a winner – a great soundbite – flipside, less accommodation for the PRS if supply becomes harder to source, house price inflation if a swathe of FTB’s get on the ladder they might not. It is a lot like the Lettings Fee ban, no one thought excessive payment by tenants for checks was correct, but outright ban saw rents increase by 6.1%. So the cost in the end was met by ‘tenants’ the group that was to be protected.