Buy-to-let landlords’ buying spree will keep more families in rental trap
This article points to potentially still further problems with the availability of rural housing choices. It tells us:
Buy-to-let landlords will embark on a home buying spree in 2013 while young adults and families remain trapped in rental properties, according to a forecast by Britain’s biggest property website.
Three out of four professional landlords will buy more homes in 2013, while the number of “virgin landlords” looking to buy for the first time is running at the highest level for a year, the research from Rightmove found. Meanwhile, 53% of tenants say they are trapped in renting, wanting to buy a home but unable to afford to do so.
The research is published as a committee of MPs begins a formal investigation into the problems facing Britain’s “Generation Rent”. The Commons communities and local government committee will examine the potential need for rent controls, regulation of landlords and letting agents, and a revision to tenancy contracts.
Urgent action is needed to tackle rogue landlords and rip-off letting agent fees, according to the Local Government Association (LGA), which represents 370 councils across England and Wales. It found that tenants are being asked to pay as much as £500 in non-refundable administration fees to letting agents on top of the rent and deposit.
Tony Newman of the LGA will give evidence to the committee on Monday. Before his appearance, he said: “With the housing market stagnant and a shortage of mortgages available to help first-time buyers, people are increasingly turning to the private rented sector to find a home.
“For many people looking to rent, the up-front costs of a deposit and agency fees can be huge. We’ve heard stories of some letting agents charging hundreds of pounds just to carry out basic credit and reference checks.”