Communities and Local Government written question – answered at on 7 March 2012.
To ask the Secretary of State for Communities and Local Government what assessment he has made of the number of privately rented properties on access to the property market for first-time buyers.
I am assuming that the hon. Member wishes to know what impact the size of the privately rented sector has on access to the property market for first-time buyers.
Access to the housing market for first-time buyers is largely dependent on access to mortgage finance. The most recent data from the Council of Mortgage Lenders shows that, in 2011, buy to let mortgages accounted for 12% of all loans for house purchase. The equivalent figure for first-time buyers is 34%. In terms of value, buy to let mortgages only accounted for 8% of total lending for house purchase.
At the same time private renting provides a vital safety net for those who cannot access home ownership, as well as a flexible option for those who choose to rent. It also underpins economic development by allowing those who cannot sell their existing home the flexibility to move to take up employment opportunities.
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