Landlord group slams Chancellor’s Mansion House speech for ignoring PRS

Landlord organisation iHowz expresses disappointment over the Chancellor “side-stepping” the private rented sector in Mansion House speech.

Chancellor Rachel Reeves failed to mention the private rented sector once in her speech at Mansion House in London as she announced mortgage reforms to help first-time buyers.

Industry experts warn the reforms do not go far enough to help the housing market.

More help for first-time buyers

Ms Reeves announced that Nationwide will widen access to its ‘Helping Hand’ mortgage, supporting an additional 10,000 first-time buyers annually.

Eligible first-time buyers can now apply with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary, down from £55,000. She also highlighted the creation of a permanent mortgage guarantee scheme.

In her speech, Ms Reeves said: “I welcome the recent changes the Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA and FCA are implementing immediately.

“That means tens of thousands more people could be able to get a mortgage in the next year alone, with Nationwide already offering its ‘Helping Hand’ mortgage to more first-time buyers, supporting an additional 10,000 each year.”

However, iHowz claim the speech offered little reassurance for landlords.

Peter Littlewood, chief executive of iHowz, tells Property118: “Chancellor Rachel Reeves’ Mansion House speech focused on supporting first-time buyers through mortgage guarantees, offering little for landlords. There was no mention of tax relief, rental reform, or landlord regulation.

“While iHowz welcome measures to help first time buyers and home movers to secure larger loans, it would be good to see similar flexibility applied to lending practice for older landlords, who often struggle to secure competitive rates, even from existing lenders.”

Speech sidestepped concerns facing PRS

Mr Littlewood adds that the government’s investment plans are also disappointing, with the Chancellor focusing on stocks and shares ISAs rather than addressing the private rented sector.

Mr Littlewood adds: “On investments, we are disappointed that despite the government encouraging investment in a wider range of investments, such as blockchain and private equity, rented residential housing remains a non-qualifying asset for pensions, except when held by Reits.

“Although economically reassuring, the speech sidestepped key concerns facing the private rental sector, leaving landlords awaiting further housing-specific announcements.”

Reaction to Mansion House speech

Industry leaders welcome moves to help first-time buyers but warn it’s far from enough.

Brian Byrnes, head of personal finance at Moneybox, said: “It is encouraging to see steps being taken to support first-time buyers. Enabling people to borrow more is not a silver bullet. What first-time buyers truly need is not just the ability to take on more debt, but meaningful, long-term support to help them start saving and investing earlier in life so they can build up that all-important deposit.”

Nick Sanderson, CEO at Audley Group, said the Chancellor should encourage downsizing among older homeowners.

He said: “Refreshed support for first time buyers will be welcomed, but it’s only the tip of the iceberg when it comes to fixing the UK’s housing market. The government’s blinkered focus on the start of the ladder ignores the fact that encouraging downsizing would prompt more movement in the market, freeing up houses for first-time buyers.

“With the number of people aged 65 and over expected to grow by 8.3 million by 2066, it’s crucial that our housing supports our population. Right now, the government is kicking the can down the road by only focussing on parts of the markets. Treating the market holistically would prompt the growth the Chancellor is so focused on. There’s no universal solution, but without swift and decisive action, the housing market will continue to drift in the wrong direction.”

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