Commenting on the implications of the Labour Party’s Lyons Housing Review on buy to let and private housing, Richard Lambert, Chief Executive Officer at the National Landlords Association (NLA), has said:
“It is entirely understandable that Labour want to prioritise first time buyers by giving local authorities the power to restrict both buy to let, and buy to leave sales of their pledged 200,000 new homes by 2020. However, without imposing new covenants or planning restrictions, which would risk scaring off investors, home-owners and lenders alike, it remains unclear how they could achieve this goal.
“Furthermore, we’re concerned that Labour has chosen not to distinguish between buy to let and buy to leave transactions. It’s only large scale investors who buy properties and leave them empty; not landlords. Landlords collectively put in the region of £20bn into providing housing for rent last year alone; a clear demonstration of how vital buy to let has become to the provision of housing in the UK.
“And although the perception exists, in reality there’s very little competition between landlords and first time buyers. Restricting up to 50% of potential buy to let transactions on new builds seems unnecessary when just 14% of total mortgage transactions are either buy to let or buy to let re-mortgages, and often the types of properties that landlords and first time buyers are attracted to are very different.”