Commenting, he said: “In spite of government pressure, lenders are clearly holding back mortgage finance. But people still need to move house – for many families and young people who can’t raise a big enough deposit to qualify for lenders’ tough criteria, the only option available is rented accommodation. The private rented sector is beginning to strain under the vastly increased number of renters – buy to let landlords can’t get mortgages either, and investment in the sector is constrained.
“We need to see substantial government support for the private rented sector – it needs to grow faster to pick up the slack from the stifled sales market. The government should be thinking seriously about tax breaks and incentives for professional and commercial investment in this part of the market.”
