A financial services provider is urging the Conservative Government to consider landlords who might be wrestling with financial problems in secret.
Reach Financial Services says that buy-to-let landlords at risk of insolvency could affect the security of up to 1 in 8 tenants across the UK.
Reach argues that there is a responsibility for the government to remember that a landlord struggling financially has a significant impact on wider society.
In light of this week’s Budget, which looks set to tackle landlord tax breaks, Kevin Blount, buy-to-let mortgage specialist at Reach, is appealing to the Chancellor to introduce positive changes to ease the burden on the rental market.
“Having a roof over your head is of paramount importance for everyone,” he says, “but for tenants relying on private property market, the security to know your landlord isn’t in financial trouble is just as crucial.”
The rise of interest rates may threaten the affordability of tenancies from landlords with just one property, as well as those with a larger portfolio, says Reach.
Whether it’s repossession or rent hike, increasing costs for landlords could unsettle tenants or even risk their notice periods, the firm argues.
“We’d like to freeze on interest rates for the next 18 months, and a commitment to investing in building new homes to cope with the intense rising demand. We also hope the Chancellor takes the cost of living for the majority of the population into consideration,” adds Blount.