‘Right to buy is step forward’ (From Croydon Guardian)

‘Right to buy is step forward’

11:53am Monday 19th December 2011

The Government’s new strategy to aid first-time buyers has been welcomed by the National Landlords Association with a reminder of the need for diversity in the housing supply.

Chief executive Richard Lambert said the private rental sector, which has grown to over 16 per cent of all UK housing stock, is equally important in catering for the demand for homes.

“Diversification is necessary if housing supply is to grow in order to provide suitable accommodation for the UK’s growing population,” he added.

Commenting on current rental rates, FindaProperty. com analyst Samantha Baden, said it was important to help more people buy, as many tenants pay almost half of their wages on rent today.

“Our analysis shows the average family in rental accommodation will now be paying around £890 a month or 46.2 per cent of their net monthly income on rent,” she said.

“So enabling more first-time buyers to get their first home and introducing Right to Buy for social housing tenants is an important step forward.”

Going forward into 2012, property analysts Assetz predict house sales growth should stay around three per cent, with many regional variations.

“We are also likely to see a continuation of parents opting to help their children onto the property ladder instead of keeping money in the bank, where they are seeing little return on their savings,” said chief executive Stuart Law.