Tenants Want Government To Make Landlords Sell Up At Knockdown Prices
A private tenants’ group is telling the government it needs to help housing associations snap up buy-to-let properties “at knockdown prices.”
Generation Rent’s website featured a blog speculating on how the housing market could be affected once the lockdown restrictions are lifted and also mulls over the recommendations from the Affordable Housing Commission.
The blog poses what could happen if private developers are unable to sell new build homes at the current market prices and first time buyers unable to afford deposits for a home.
The blog then discusses the plight of ‘distressed landlords’ who need to sell their properties and says: “To encourage a tenure shift of homes from the private sector into the social sector, the Commission recommended that the government support social landlords to purchase existing homes and purchasing homes at knockdown prices would make it easier for not-for-profit landlords to charge affordable rents.”
The blog then muses there could be a major problem for housing associations as BTL investors may get to bargain buys as they will ‘see a housing market crash as an opportunity to buy up properties and then ramp up rents as the economy recovers.”
The blog concludes:”We need the government to provide a social housing acquisition to make sure tenants are the ones who benefit from any crash.”