To: Housing Minister. The Rt Hon Robert Jenrick MP
STOP LLOYDS BANK BUYING UP NEW BUILD HOMES FOR RENT!
Lloyds Bank is entering the rental market by buying up new build housing thus depriving first time buyers the chance to buy and they will land up paying a rent at least twice as much as the mortgage.
A law should be introduced that:
1. No new home can be sold to the rental market, only to buyers who will make it their domicile.
2. Buy to Let should be restricted to properties that need some updating. That would ensure developers actually do some work to make their profit and give renters a decent home to live in and meet environmental standards.
3. More safe Shared Ownership schemes where people can buy a new build and can staircase their mortgage when they earn more be introduced and monitored by the government. Hello Homes in the East Midlands have a brilliant scheme: why not extend such a scheme nationwide
4. On help to buy schemes, if the prospective buyer can pay the high rental costs then they should be allowed a mortgage to match it. Remember it wasn't these young people who caused the banking crisis; it was the banks and they have the audacity to penalise hard working young people, most of whom are are on moderate incomes and paying off their student loans to add to their misery!
Why is this important?
First Time Buyers cannot get on the property ladder. Young people are forced with the prospect of having a lifetime of renting. Their rentals are often poor quality, particularly down the lower end and do not meet basic standards now required for helping the environment. High deposits and a high income to get even the basic of homes is now out of reach of most young people. They are paying rents which are much higher than what they would pay on a mortgage. Now Lloyds Bank is entering the rental market by buying up new build housing thus depriving first time buyers the chance to buy and they will land up paying a rent at least twice as much as the mortgage.
Prospective homebuyers do support this. You are paying a high price to line other peoples' pockets with your rent and no prospect to buy. Parents - you want to see your children settled in their own home. We don't all have a money tree as the government likes to think - the bank of Mum and Dad (you're busy saving for your retirement and many of you will be still paying a mortgage!) All of us want first time buyers to have a realistic chance of owning their own home. It's good for them and good for the country - Buy to let has got out of control. Rental homes should not be a source of income for big business especially those like banks who should be helping people to get a mortgage not depriving them of one!
I'm a much older person who got my own home on a low deposit, and the mortgage was given much more easily. Today, house prices have risen much higher than wages and will be made worse by big banks and others who see this as a source to boost their funds. I want young people to be able to buy a home more easily.
Read more on Lloyd's plans to move into the UK rental market: