In reaction to the latest figures from the National Landlord’s Association which reveal that one in five landlords are planning to sell up, Charles McDowell, Aldermore’s Commercial Director, Mortgages comments:
“In many ways, this was expected. On the back of the various changes to the market, including the increase of stamp duty and reduction of tax relief, many commentators predicted that the buy to let mortgage market would contract by 20%. Therefore, to see this number of landlords intending to sell is in line with expectations.
“From our perspective however, the most worrying comment in the report is that most landlords will increase rents before they sell, to cover the increase in costs, due to these changes. This would be a disaster for tenants, especially those who are renting and have aspirations to buy their own home, as ultimately it will affect their ability to save a deposit and get on the ladder. Our latest First Time Buyer Index1 found that raising an adequate deposit continues to be the biggest concern for first time buyers across the UK and that one in three (35%) believe buying their first home will be an extremely difficult process.
“We have always believed that first time buyers are the lifeblood of the housing market, but to have a healthy first time buyer market, we need a healthy private rental market, not one that adds further obstacles to a house buying journey, which is already difficult for tenants and prospective first time buyers.”
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Rachael Snelling, Aldermore
Phone: 0208 1853 102
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Rozie Green, Lansons
Phone: 0207 566 9724
Notes to Editors:
1 The figures from 2017 are sourced from a nationally representative survey conducted by Opinium Research with a sample of 1,505 prospective first time buyers and 505 actual first time buyers between 27 July and 3 August 2017. The sample was restricted to GB adults who were students or in work.
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