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Landlords losing tenants taking up 95 per cent mortgage deals

One in six landlords have allegedly lost tenants who have taken advantage of new five per cent deposit mortgage schemes.

Online agency Accommodation says some 17.6 per cent of landlords questioned have lost tenants directly due to the scheme opening up the property market for many as it makes buying more attainable. 

It says the combination of the easing of lockdown, the low deposit option and the extent of the stamp duty holiday has led to a huge increase in demand in properties - meaning that some 36 per cent of landlords now say it’s more difficult to source new investment units as a result.




Aaron Short, founder and chief executive of the agency, says: “It is 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.”

Accommodation describes itself as “a next generation letting agency, built on great people and great technology to help streamline the rental experience, making it better for everyone.”

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    Great news am pleased for renters that wanna be owners. This is how it should always have been we provide a place to live for a short period for people to live until they buy. This is the ideal renter base.
    Now Shelter/GR/Acorn for every property bought by home owners stops one of your ‘never gonna buy’ renter base getting a place we provide for you to live in. You should be pleased it’s what you campaign for

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    They say they have questioned Tenants that have lost Tenants, what on Earth are they talking about ?.

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    I'm loosing a young family in August they have been excellent tenants over the past 6 yrs, I'm sad to see them go, but at the same time happy for them. The house will rent again but only to good tenants who will be checked out very carefully .

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    Happy for them, however 95% mortgages are likely to cause a significant number of repossessed properties in the near future. Many will struggle in the post Covid world

  • Ferey Lavassani

    I remember back in early 80s during Nagel Lawson's Chancellorship when he lowered the interest rates and set a deadline of three months for a couple to be able to claim two tax reliefs rather than one as a couple. Some poor devils rushed to beat the deadline and pushed the house prices dramatically, up. Then a 20% crash in New York Stock Market triggered the Black Monday of October 1987. Base rate of 14% caused huge number of repossessions. I personally do not think we ever go back to high interest rates of that kind. Then 14% plus, interest on £60K and even 4% on the same property that is worth £250K today.

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    IMHO this is what should be happening. Those who can afford to buy should be able to if they want to, and as long as the affordability criteria are sensible there is no reason why they should be any more likely to be repossessed. In many cases, the mortgage payments are less than the rental payments would be on a similar property. There will always be people who either can't afford, or don't want to buy for what ever reason so there will always be tenants for sensibly priced and well maintained properties so no worries for us here.

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    Andrew, all this talk about eviction is nonsense, when Tenants are ok we don’t want to get rid of them, we are sad the day they leave.


    It's just the bad ones we like to see the back of, but the name of the game now more than ever before is not to get the bad one in the first place, no risk taking now going forward

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    Good for them - it shows not all tenants are feckless and some of them do actually know how to look after properties and budget to 'better themselves'. Always sad to see a good tenant go, but always happy for them if it's because they've bought somewhere.

    Assuming their mortgage provider/broker has done due diligence then even at 95 % LTV a mortgage holder should be able to afford interest rises as affordability has to be loaded for (I think) up to a 5% interest rate rather than the super low rates currently on offer.

    So, will Shelter, et al, continue to say we're preventing people from getting on the housing ladder - I think so, there's nothing that will stop their agenda of getting the PRS shut down. They can't see past their blinkered faces to realise the damage that will do to people who will never be able to rent from councils/social housing due to the extremely long waiting list this will cause.

    Theodor Cable

    I don't belive it!!!!!!!


    What decent tenant would want to rent from council / housing assocs, their properties are far worse than anything in the PRS, and what sort of neighbors are they going to be living next door to ?

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    So if Shelter gets rid of private rented sector what will be left for them to do ?.
    Same with motorists get rid of the cars ?, who will they fine then for the easy money, it might be you.

  • Theodor Cable

    Shelter will do what they have done for at least 50 years.


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