Calls for recompense of private landlords under 'Rent First, Buy later' scheme

Posted: 17 Jul 2008 13:17:13 GMT

Commenting on the Government's proposed Rent First, Buy Later scheme, price comparison site Moneysupermarket.com has said that private landlords will want compensation.

Whilst the site agrees that at first glance the plans seem to be a "positive move" to help first-time-buyers onto the housing ladder, the scheme may simply be "spin without substance".

Questioning the proposal, Louise Cuming, head of mortgages at moneysupermarket.com, said: "There are no details of the number of properties available under this scheme.

She continued: "Private landlords will want recompense from the Government up to their full 100 per cent and the number of Housing Association properties being built is small in comparison to the demand for rental properties."

The proposed government measures would allow those households that earn under £60,000 annually to rent a property at a discounted rate first and buy it "at a discounted rate" two to three years later.

According to Landlordexpert.co.uk, the ailing housing market is at least good news for landlords as "the current uncertainty around house prices is driving record demand for rental property from tenants who are eager to pay for [a landlord's investment].

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