Despite record high rental prices, it’s been said this week that buy to let insurance holders are “not being greedy”.
At least that’s according to leading property firm, Upad.
The latest figures from LSL Property Services show that average rents in England and Wales increased for the sixth consecutive month in July, to reach £705 per calendar month.
James Davis is chief executive for Upad.
In response to the figures, he notes that landlords have not been excessively hiking their asking prices and are willing to “take a fair rent from a reliable tenant”.
He comments: “What we are finding is that landlords aren’t being greedy. They are not putting on a 20 per cent increase.”
He goes on to explain that “landlords are just keen to find the right tenant – because what you are getting more of right now are more tenants, but their ability to pay and their reliability is decreasing.”
There is still a “vast gap” between the quantity of new homes being produced in the UK and the number of properties required by the public, according to SmartNewHomes.
Steve Lees, director at the new homes website, said that there remains a “massive shortfall” of new-build homes in the country and the situation is not expected to become more promising in the near future.
“Until mortgage finance and the supply of land for development improves, the situation is unlikely to improve drastically,” he said.
The latest figures from the Department for Communities and Local Government show that the number of seasonally adjusted housing starts in the second quarter of 2011 dipped by nine per cent compared to the previous three months.
Low-cost home ownership schemes (LCHO) have become increasingly popular due to the “desperation” of first-time buyers attempting to become landlord insurance holders, FirstRungNow.com has said.
New figures from Halifax show that LCHO homes totalled 13 per cent of all private enterprise and housing association sales in 2009/10, compared to eight per cent before the financial crisis began.
Helen Adams, managing director at FirstRungNow.com, explained that many young people are now exploring all possibilities of accessing the housing market.
“I think that first-time buyers at the moment are looking at all options that are available to them – both special mortgages from lenders and government schemes – out of desperation because it is so hard to get onto the property ladder without some sort of assistance,” she said.
Ms Adams added that affordable housing schemes can be “convoluted” and need to be made clearer and more straightforward in order to help first-time buyers in their efforts to become buy to let house insurance holders.