2^nd May 2016

A number of housing schemes would fall flat on their faces if it were not for the money invested by private landlords in supporting new residential builds.

A recent meeting was held between a number of important private rented sector stakeholders and other key figures involved with the building and planning of new developments for mixed tenures. It was acknowledged that small private landlords were crucial in their role of assisting builders achieve the necessary finance for new developments.

In the past the building industry was able to start new developments with the support of private landlords as being much faster than mortgage providers’ process of agreeing to owner-occupiers. This meant that landlords who invested were able to achieve between 25% – 50 % of the off plan pre-sales which financed the cost of construction.

Predictions for the Quarter 2 of this year are saying that there will be a major decline of buy-to-let financing which could drastically reduce the number of new builds.

The delegates unanimously agreed that the both the HM Treasury and the government, need to wake up to the fact that they must get up to speed with the necessary needs that property developers and property investors have, when trying to combat the housing crisis.


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