Landlord News

Rewarding Landlords who Sell to Tenants is Not the Solution to the Housing Crisis, Argues Shared Ownership Supporter

Em Morley - October 12, 2018

The Director of a portal for shared ownership properties and mortgages has insisted that the Government should not reward landlords who sell to their tenants, in a bid to solve the housing crisis.

Stephen Dwelley, of Share to Buy, has spoken out in response to a report from think-tank Onward.

He explains his stance: “Following this week’s research from the Institute of Fiscal Studies, which shows that house prices have increased by 173% over the past two decades, think-tank Onward has suggested that the Government should reward landlords for selling properties to long-term tenants, to help young people onto the housing ladder.

“However, with recent rents continuing to rise to unprecedented levels, particularly in the capital, such a move is likely to further reduce stock of quality rental properties, putting additional upward pressure on rents. This would ultimately make saving for a deposit even more of a challenge for Britain’s under-35s.”

Dwelley believes: “The only genuine, long-term solution to the UK’s housing crisis is to dramatically increase housing output, with a specific focus on homes built for affordable homeownership – such as shared ownership and London Living Rent, backed by the Mayor of London.

“The median household income of London-based shared ownership registrants on Share to Buy is £42,000 – almost 40% less than the average first time buyer in the capital. Minimum deposits for shared ownership homes in London average at just £6,335.97 for a one-bed, or £8,390.60 for a three-bedroom home – making this perhaps the only affordable route onto the housing ladder.”

Nevertheless, his idea faces difficulties: “However, in the current market, the UK’s affordable homeownership providers face dwindling funding to deliver truly affordable homes in sought after areas across the country and, as a result, demand for shared ownership homes undoubtedly outstrips supply.

“In the up-coming Autumn Budget, we would implore the Government to prioritise alternative homeownership schemes, helping to safe-guard the future of would-be first time buyers in the UK.”

We have already received the National Landlords Association’s and Residential Landlords Association’s expectations from the Chancellor for this month’s Autumn Budget.