Comment on Homes and Communities Agency (HCA) plans to encourage property rentals

Published:

01/05/2009

Topic:

Press Release,Mortgages

Commenting on the Homes and Communities Agency (HCA) plans to encourage property rentals, Louise Cuming, head of mortgages at moneysupermarket.com, said:

"The Government's latest plans are another example of the mortgage market going full circle. Trying to shift housing policy back to rentals harks back to Labour governments of old, albeit this time it appears we will be looking at private rather than local authority landlords. But is this a good thing?
 
"The demand for home ownerships shows no sign of abating, but few people can afford to find the large deposits needed. Should they be forced to keep renting not by choice, but by necessity?

"Instead of helping to boost the rental market, we should be working towards satisfying the demand for home ownership. If first time buyers could be helped to get on the housing ladder, it would be a far more effective way of supporting the housing industry than concentrating on financial incentives for large institutions to build rental properties.

"However, new property builds (or even completion of part built properties) has slowed right down whether the properties are for rental or sale.  If pension funds can be persuaded to put money in and kick start house building in the UK this will be a step in the right direction for home buyers, renters, and the construction sector.

"One of the big issues for institutions is that it isn't easy to buy or sell portfolios of residential property.  If you are purchasing a house at £150,000 you pay no stamp duty, however, if you're buying ten at £150,000 then you are obliged to.  If the Government is serious about getting investment from institutions then they need to change this arrangement."

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