With growing numbers of benefit claimants now relying on the private rented sector, the Residential Landlords Association is going up against government to end “shameful” banking practices that prevent property rental to them.
The RLA says such practices are so entrenched in buy-to-let lending policies that they now need “urgent action” to address.
Research carried out by RLA mortgage consultants 3mc last year found that 66% of lenders representing approximately 90% of the buy-to-let market do not allow properties to be rented out to those in receipt of housing benefit – this includes TSB, Virgin and the Natwest.
David Smith, Policy Director for the RLA, said: “With growing numbers of benefit claimants now relying on the private rented sector, it is shameful that many lenders are preventing landlords renting property to some of the most vulnerable in society with little or no justification.