Buy-to-let landlords are Pricing Out Buyers
Buy-to-let landlords are Pricing Out Buyers:
Coventry councillors are now making a claim.
They say buy-to-let investors are trying to monopolize Coventry’s housing market.
These investors are pricing out families buying for the first time.
Hence, it seems policy moves discourage small-scale landlords.
As a matter of fact, one-quarter of all people staying in Coventry are renters.
Coventry Council scrutiny co-ordination committee got a report.
The report says buy-to-let landlords tend to monopolize Coventry’s housing market.
The landlords are crowding out families who are buying a home for the first time.
Moreover, the coventrytelegraph.net reports about rents in Coventry.
The report says the regional average is lower than Coventry’s rents.
Between October 2017 and September 2018, the average rent was £625 per month.
There are suggestions that this has an effect.
Disposable household income per head in Coventry is less than elsewhere.
Comparatively, it is less than the national average.
Similarly, it is less than that of the West Midlands.
In 2017, the Coventry’s disposable household income per head was £14,555.
In the West Midlands, it was £16,885. The national average was £19,988.
Opinions of Some of the Councillors in Coventry
Council Chair of Coventry, Cllr Richard Brown, spoke on the matter.
He presumed that it was because tenants spend more on rent.
It meant the private rented sector performed well in Coventry in past years.
And that is a major concern.
Furthermore, Cllr Kindy Sandhu shed more light on the costly rents.
Foremost, she commented on the housing owned by the university in Earlsdon.
However, she said they are selling these properties to landlords.
In addition, Cllr John McNicholas commented.
He noted that landlords are taking advantage of it.
Therefore, we need to focus on it.
He said this defeats the aim of supporting student-built housing.
Also, more first-time families should buy homes.
However, they may price them out of the market due to costly requirements.
Therefore, the objective will not be achieved.
Consequently, they need to notify the housing cabinet member Cllr Tariq Khan.
Anyway, reports say the council is working on improving the PRS.
This is through the drafting of a selective licensing policy.
This policy will launch new charges for landlords.
The charges will aim at getting rid of irresponsible landlords.
Furthermore, licensing on houses is now available in several occupations.
This became effective in April.
It led to new charges.
Primarily, the charges are for lowering the high number of HMOs in Coventry.
Meanwhile, the council tends to support accommodation built for students.
This is to encourage them to leave smaller student housing.
Hence, this will make the housing vacant for families to purchase.
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