A new report claiming that ‘landlords are too wealthy and should be banned from buying new-build homes and have a buy-to-let mortgage lending cap to stop them growing even richer’ has been met with outrage from Belvoir Sheffield managing director, Rick Flay.
The report urging a political think-tank came from The Strategic Society Centre which published a series of two research reports – one profiling landlords and the other recommending curbs on their ability to borrow money.
The report outlines that there should be a ban on private landlords borrowing money to buy new-build homes, a cap on how much money banks and building societies can lend to private landlords and new laws stopping property owners from letting homes that are less than three years old aimed at making sure new-builds are owner-occupied rather than let to renters.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of homes for rent in Sheffield, said: “This latest report is ridiculous, most first time buyers cannot afford to buy homes due to the large deposits require, capping the amount of mortgages given to landlords will not change the fact that first time buyers are frozen out of the market.
“If landlords are capped at the amount of finance they are allowed there will simply be homes left empty. All this would result in is a market where first time buyers can still not afford the deposits, but who can also not afford to rent either putting them at risk of homelessness!”
“The Government do need to be assessing the housing shortage I agree, but not preventing certain types of people from buying, as this will result in a shortage of rental properties, which in turn helps no one.”
James Lloyd, of the centre, earlier this week argued: “Most private landlords are not getting rich off the taxpayer, but instead are receiving transfers of income and wealth from tenants, who are significantly poorer than they are. In this way, it would appear that the private rental sector increases wealth inequality in society,”
Rick, whose letting agency on Campo Lane in Sheffield, specialises in providing flats to let in Sheffield, added: “It is a buyers’ market at present and penalising landlords will only add to a further housing shortage. I agree that it should be made easier for first time buyers to secure finance, but penalising landlords for this does not solve the problem.”
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
Belvoir Sheffield was the winner of the Belvoir Franchise of the Year Award for 2013
For more information, please call 08452 60 40 90. Alternatively, please email us at sheffield@belvoirlettings.com
