The cautionary attitude of some lenders and landlords guarantees no access to properties for anyone on benefits – Full Stop. A general circumnavigation of financial issues surrounding such a landlord market often supports the attitude of no interest for the landlord, similarly the financial people (lenders) usually root their perspective further along the chain to their lenders’ directives and criteria associated with that lenders risk assessment.
It will therefore be interesting to watch how the recent announcement by TMW (owned by Nationwide Building Society), of no longer accepting applications for lending on properties whose tenants are in receipt of housing benefit, will play out.
Are these new Terms and Conditions some foot-stamping by a lender reducing risk for its investors….. or protecting its borrower? Will it be necessary for the landlord to construct a new business plan that foot-stomps around rent collection? Or what about the impact on loan security values in an already challenged balancing act for valuing comparables? And of course there are the tenants, some who don’t have bank accounts, many not enabled for a competitive market.
Could this be the disruption that gives property chain a new meaning?
Image and Article credit: Copyright SUF 2013