Landlord Assist says demand for the Government’s flagship Help to Buy Scheme coupled with an expected rise in interest rates could be the catalyst for the buy-to-let sector becoming more tenant-friendly.
For the past few years the private rented sector has sustained a significant growth period caused by huge volumes of people opting to rent rather than buy because of difficulties in obtaining suitable finance for lenders.
Subsequently, competition for the best properties has been fierce and has allowed landlords to charge record rents and enjoy substantial yields.
But looking ahead, the nationwide tenant eviction and rent recovery firm is warning landlords that market conditions could be about to change, and potentially force down rents for the most expensive properties.
According to Stephen Parry, Commercial Director at Landlord Assist, the Government’s Help-to-Buy scheme is making owner occupation more accessible and helping those wishing to move away from rented accommodation.
For tenants paying the highest rents, this will make purchasing a property a lot more achievable and more cost-effective than renting.
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