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%) landlords say they’re worried about the impact of Help to Buy on the private rental sector, while only 15% 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 NLA, 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."