Govt. Guarantees £10Bn of funding for BTL investors

Rinoa

http://www.investegate.co.uk/News/gvernment-sets-out-rules-for-schemes-to-help-investors-provide-homes-for-rent/399830/

The government is setting out how 2 new schemes will put up to £10bn of lending guarantees to work so investors can expand the private rented sector and build new affordable homes, Chief Secretary Danny Alexander and Housing Minister Mark Prisk announced today. The ministers are publishing further detail on 2 guarantee schemes that will use the government�€?s hard-earned fiscal credibility to provide property investors with low-cost finance so they can deliver new private rented or affordable housing. The guarantees were announced in September 2012 to kick-start private investment in the housing sector, which will create thousands of new homes and jobs, boosting growth across the country. Following extensive consultation with the housing sector, the government is setting out eligibility requirements and how the guarantees will be structured, in the scheme rules for affordable housing and the scheme rules for private rented housing. It is also publishing an invitation to tender for the running of the schemes. The guarantees will support new-build projects, located in the United Kingdom. The private rented sector guarantee will back a variety of options to invest in new homes for private rent, from building new homes to converting existing commercial spaces into rental properties.

Good to see the govt. lending a hand to the private rented sector.

the_flying_pig

I can just about accept this kind of thing provided that, as seems to be the case here, it's for newbuild only. Anything else would be a complete nonsense.

Turnbull2000

New build housing only. Combined with numerous other measures, this should help prevent falls in new build asking prices and land values.

Government intervention is now part and parcel of the overall market, so prices will continue their adjustment above historic levels.

Thrugelmir

Turnbull2000 wrote: »

new affordable homes.

Probably not what current BTL investors wish to hear.......

IveSeenTheLight

Thrugelmir wrote: »

Probably not what current BTL investors wish to hear.......

Why?..........

Anecdotal I know, however....
Went into an EA yesterday to check up the progress on my self build mortgage.
Synopsis was that in general the regular market is increasingly bouyant, however from a self build perspective the lenders are reducing their products.

I wonder how much the "Newbuy" scheme is impinging on those who wish to build for themselves.

Thrugelmir

IveSeenTheLight wrote: »

Why?..........

Competition in local markets. As would create bench mark for rents for similar properties .

Graham_Devon

This was announced some time ago, and wasn't seen as a good thing by a landlords association (the links were put up).

Basically, they can't be sold until ALL funds are paid back, they have to be new build, or conversion from commercial property. They have to have set (higher insulation & sound proofing standards etc), and have to provide affordable rents. They also have to accept housing benefit tenants. There was also a 10-20 year holding period in the initial plans, where you couldn't sell it for 10-20 years.

This was what was annoucned then, not sure if anything has changed.

However, it's basically competition for existing landlords.

shortchanged_2

It's a supply and demand thing innit.

Thrugelmir

Graham_Devon wrote: »

Basically, they can't be sold until ALL funds are paid back, they have to be new build, or conversion from commercial property. They have to have set (higher insulation & sound proofing standards etc), and have to provide affordable rents. They also have to accept housing benefit tenants. There was also a 10-20 year holding period in the initial plans, where you couldn't sell it for 10-20 years.

.

In other words a good idea!

moneyinmypocket

We have a lot to thank landlords for they have provided good housing stock for many many people up and down the uk. BTL landlords are a pillor of society and the gov should be giving them tax breaks as a thank you

grizzly1911

moneyinmypocket wrote: »

We have a lot to thank landlords for they have provided good housing stock for many many people up and down the uk. BTL landlords are a pillor of society and the gov should be giving them tax breaks as a thank you

They/you get tax relief on the interest charges as a minimum.