Nearly a fifth of landlords have lost tenants directly due to the government’s new low deposit mortgage scheme, according to the latest National Landlord Index.
The survey quizzed 200 landlords, 17% of whom were told by their tenants that the scheme – launched in April to help those with 5% deposits get on the housing ladder by guaranteeing the portion of the mortgage over 80% – was the reason for their move.
Published by Accommodation.co.uk, the Index reports that the scheme is opening up the property market for many by making buying a home more attainable, while the easing of lockdown and extended stamp duty holiday have also prompted a huge increase in demand for properties.
As a result, more than a third (36%) of landlords say it is now more difficult to source new investment properties due to the buoyant market.
However, the online letting agency has also seen an influx of tenants and increase in rental demand.
Aaron Short, founder and CEO (pictured), says: “It’s great to see the new mortgage deposit scheme having a positive impact for tenants and the property market being so buoyant in the wake of the pandemic.
“Knowing how the market is impacting on UK landlords and tenants gives us vital information to really understand the future of the lettings market.”