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Liz Truss says she wants to make it easier for tenants to buy homes

A review of the mortgage system would ensure that tenants’ records in paying rent would contribute towards their ability to secure a mortgage on a first home, says Liz Truss.

The front runner in the race to become the next Prime Minister says that she wants her premiership to be marked by the breaking down of barriers to home ownership.

Government figures show that more than half of current renters could afford a mortgage, but only one in 17 are able to access a typical first-time buyer mortgage because most lenders ignore an applicant’s ability to pay rent as proof that they can afford to pay a higher mortgage.


Few other details have been given by the MP, in a series of weekend speeches ahead of the arrival of ballot papers with Tory party members today.

However, on broader housing issues, Truss says she will also abandon “top-down Whitehall-imposed housing targets” and “rip up the red tape that is holding back housebuilding.”

Councils will instead get to choose how many new homes their communities need to build, her team says. 

But a Truss administration would “work with local communities to identify sites ripe for redevelopment and reduce planning restrictions – turbocharging commercial and residential development”.

Truss herself adds: “As a former councillor, I remember those painful hours sitting through planning committees. I’ll put power back in local councillors’ hands who know far better than Whitehall what their communities want.”

She also says she wants to create new model towns and industry hubs, in the spirit of Bournville, in the Midlands and Yorkshire.

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    The likes of Experian will accept rental history to count against credit score. However the renters need to register with them in order for it to work. I have a group of working midwives who are great tenants. I've told them about it but I know they haven't bothered to register. Hey ho

  •  G romit

    Great news!
    Let's stoke up demand, and push house prices even higher!!

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    Surely mortgage applications are assessed on income? So either they meet the income level required or they don't. Same as if owner occupiers wanted a bigger mortgage, it would be assessed on their income. I've had 2 couples who gave notice in 2020 to buy their own house.


    13 of my tenants have bought in the last 6 years. Nearly all were in their 20s. Most bought brand new 3 bed semi-detached houses with the HTB scheme. Two of them went straight into 4 bedroom houses as their FTB home. It will save them a fortune in SDLT and estate agent fees over the next few years. It's fantastic for those who did it but I'm not convinced it's very good from a tax revenue point of view for society as a whole.

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    Over the past 12 months I've had 4 sets of tenants leave to buy their own homes, good for them, sad to loose them but happy for them at the same time.

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    Lenders always demand to see bank statements as part of the mortgage application process. If they can reject an application because of a gym membership or too many takeaways they can certainly spot rent payments.

    The simple fact is that the affordability multiples are different for renting and buying. Rent includes a whole basketful of components such as insurance, boiler servicing, repairs, etc. A home owner would have to pay for all those things on top of the mortgage payment.

    The standard formula for rental affordability is to take the annual salary and divide it by 30 to get the monthly affordability ceiling. A couple both working full time on minimum wage would earn about £36000 so would clear affordability checks for £1200 a month rent.
    Mortgages are based on house prices instead of monthly payments. Usually 4.5 or 5 times income can be borrowed. So an income of £36000 would allow borrowing of £162000 to £180000 assuming no other debt was being serviced.
    What those figures translate to around the country will vary hugely. In this area it would cover rent for a small 3 bed house with a garage in a nice area or you could buy a 2 bed ex council flat.
    To buy a new build 3 bedroom house in this area costs about £350000 so a couple would need to be earning around £70000 and have savings of at least £25000 to cover deposit and fees.

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    Bournville was financed by the Cadburys' who are Quakers, and were tied houses ! I think that Ms Truss eyes are set on our properties. It's very cheap to handout someone else's property!

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    I think people are having a laugh here. Some people don't repay debts, that's just the way they are!

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    The council waiting lists for Housing are increasing rapidly as Landlords leave the Private rental sector. Her time would be well spent reviewing why there are 250000 fewer properties in the private sector and why Landlords are selling up.

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    Stephen- Exactly 👍🏻 , no point having a bigger pool of people who can secure a mortgage if there is nothing to buy !! BUILD more affordable housing 🙄

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    Putting planning back in locals hands will just see a reduction of housing delivery. Nimbyism will take over with a “not in my back yard” attitude. At least while government has forced councils to deliver a certain amount of housing, the local councils have been forced to deliver.

  • PossessionFriendUK PossessionFriend

    Nothing more than ' selling ( some other ) families silver to buy votes. '

  • Matthew Payne

    Will be interesting to see if the changes to lending criteria that kick in today make any material difference to accessibility. I would however, takes any promises, mostly unfunded, offered in a leadership content with a large bucket of salt. The next 5 weeks is only about impressing 200,000 tory party members.

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    Jo, to buy a new Build 3 bed house in west London costs £800k, 2 new one just built down the road from me for sale. According to what I was reading yesterday average London rents are £1750 per property pm if I read it correctly. All my Rents are below average Rents, it seems to me the Tenants are getting a real bargain. Its well time for Shelter, Generation Rent etc to stop knocking us and get their facts right. Its worth doing figures on this or use your figures as a guide and multiply by the multiple’s. They don’t know when they are well off , buy one of those and complain to the lender see how you get on.

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    Liz, is talking daft the Council’s have far too much power already, They are the root cause of most housing problems caused by their interference, stupid laws and huge Penalties and fines how is that an incentive for any landlord to do better only withdraw his services. They don’t know much about getting the best out of people, just as well they have Public funds to play with and of course they have now taken private landlords money too. Ms Truss could you not scrap the red tape for landlords, scrap Section 24. Retain Section 21. Turbo Charge Private Landlords you’ll have more property than you know what to do with, crisis over no Public funds required. Sorry big Company Director’s get the soft money somewhere else.


    Nice to dream Michael (no offence intended) but won't happen, we are on our own, up hill battle and the losers ? our good tenants

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    Affordable Rents ask my Tenants very affordable rent in general £100. pw each payable monthly some far less, for this all have own room some shared facilities, otherwise the run of whole house & small garden plus parking for 2 cars. So people wants to tell me its cheaper to Buy than Rent try this one in a central prime location with £1m price tag, get calculator out and stop talking nonsense.

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    I am surprised 1980’s got a mention when I was paying up to 17% interest, not 2%. Short memories and the tax had to be on the principle repayment up front as well on a variable interest loan, just as if you had the money in your pocket but it’s already gone to the lender, unlike plant & machinery which were able to claim all eventually, unlike property.
    So now no worries install an occupant with hands hanging & give him the property at a discount as well.


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