Many new housing schemes would fail to get off the ground if it was not for the large amount of money that small private landlords typically invest in new residential property schemes.
At a recent National Landlords Association (NLA) hosted roundtable meeting of key private rented sector stakeholders, delegates with a direct interest in the planning and building of new mixed tenure developments were eager to point out the crucial role played by smaller private landlords in helping housebuilders finance the construction of new property developments.
Traditionally buy-to-let landlords have been able to commit to new housing developments much sooner than residential mortgage providers generally permit owner-occupiers, which mean that landlords often make up a large share of the 25% to 50% of off-plan pre-sales that help developers finance the cost of construction.
Early indications seem to indicate that figures for the second quarter of this year will show a significant decline in the volume of buy-to-let deals completed leading to knock-on effects in traditional construction and the ability to build-out planned sites.
Members of the roundtable, which was chaired by the NLA’s Carolyn Uphill, broadly agreed that the government, and particularly HM Treasury, is out of sync with the needs of property investors and residential property developers, and as a result, the NLA has vowed to develop a broad platform to push for change on behalf of landlords and the wider private rented sector.