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Rewarding Landlords who Sell to Tenants is Not the Solution to the Housing Crisis, Argues Shared Ownership Supporter
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
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.
