The Government’s cuts to social housing could cause “carnage” in the private rental market as more people look for private tenancies, according to Precise Mortgages.
Chancellor George Osborne said last week that new social housing tenants will face increased rents at around 80 per cent of the market rent.
He forecasts this will allow the building of up to 150,000 new affordable homes over four years.
Precise Mortgages managing director Alan Cleary says: “Now that the Government has effectively handed social housing to the private sector, we are destined for carnage if lending continues at the current rate. At the moment, lending in the buy-to-let market is down 80 per cent on its peak and there is little sign of it clawing back any lost ground.
“The Government must provide incentives for lenders to lend and for professional landlords to invest further.”