Buy-to-Let Landlords Excluded From Budget Bonus
A major part of the Chancellor’s Budget was his £3.5 billion ‘Help To Buy’ scheme but industry analysts are disappointed that an opportunity to help private landlords was missed.
George Osborne’s measures are designed to assist people to get a foot on the property ladder by increasing the availability of mortgages. Under the scheme, the Government will offer a five year interest free loan of up to 20% of the value of new homes to top up the deposit put down by buyers, provided that they can put down a 5% deposit.
A second strand of the scheme called "Mortgage Guarantee" will see another £12billion invested by the Government as an insurance to lenders who provide better mortgages to buyers.
The Chancellor is hoping that his new initiative will help 500,000 potential buyers on to the property ladder and that the building sector will kick start a faltering economy.
However, the scheme has excluded property investors and private landlords will not be helped to bring more rental property on to the market.
Many involved in the private rental sector have expressed their disappointment that landlords – the people who have played a key role in helping to address the housing shortage – have not been helped to play a further role.
An increase in the rental sector would also boost the economy and, perhaps crucially, help regulate rental prices.
About the authorEddie Hooker has been involved in the insurance industry since 1985. He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996. Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection.
Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association.
By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support. This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.
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