Landlord Growth 'Blocking First-Time Buyers'

By Poppy Trowbridge, Business And Economics Correspondent

First-time buyers are being blocked from the property ladder as the number of wealthy landlords grows, a new report reveals.

The number of landlords as a proportion of the UK population has more than doubled over the past 20 years, according to new research by the Strategic Society Centre (SSC).

In addition, the higher financial status of landlords, versus that of renters or first-time buyers, is contributing to more expensive home prices, the study says.

Among landlords, the average financial wealth is £75,103. That is significantly higher than that same average cash measure among renters, which is just £9,506.

James Lloyd, director of the SSC, said: "The Government champions 'aspiration' and getting people on to the property ladder. But the last decade has seen the unending growth of the private rented sector, with more and more private tenants trapped renting seeing their dreams slip away.

"But building new homes will never be enough for the Government to help people's aspiration for home-ownership without new restrictions to ensure that new-build homes go to new homeowners."

The SSC has called on the Government to tip the balance back in favour of first-time buyers.

Adding to the picture of financial imbalance between private landlords and renters, the research found that proprietors also hold an average property wealth of £479,598.

There are now around 3.6 million households renting privately, up from two million in 2000, the latest government figures show.

Richard Lambert, chief executive officer at the National Landlords Association, said: "Many of those who once would have expected to become first-time buyers remain in the rented sector because they can't build up the deposit to secure a mortgage in the current restricted market.

"The subsequent increased demand for rented property means the private-rented sector has doubled in size in the past five years.

"More people are seeing the business opportunity in letting property, and many landlords already in the sector have expanded their portfolios.

"Demand is definitely there from tenants, landlords and would-be investors for future growth so the private rented sector is going to play an increasingly important role in meeting the need for housing in the future."

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