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| Version 1 | Version 2 |
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| Warning of fewer rental properties as landlords squeezed | Warning of fewer rental properties as landlords squeezed |
| (about 20 hours later) | |
| Renters could find it more difficult to find properties in the next year or two as landlords struggle with higher mortgage rates, MPs have heard. | Renters could find it more difficult to find properties in the next year or two as landlords struggle with higher mortgage rates, MPs have heard. |
| Ray Boulger, from mortgage broker John Charcol, said landlords may be more reluctant to hold on to buy-to-let properties which could have a "serious impact" on the availability of homes. | |
| He said the situation was particularly acute in London and South East England. | He said the situation was particularly acute in London and South East England. |
| The Commons Treasury Committee has been hearing from mortgage experts. | The Commons Treasury Committee has been hearing from mortgage experts. |
| The session was designed to review the state of the market during and following the upheaval of recent weeks, partly as a result of former chancellor Kwasi Kwarteng's mini-budget. | The session was designed to review the state of the market during and following the upheaval of recent weeks, partly as a result of former chancellor Kwasi Kwarteng's mini-budget. |
| New fixed-rate mortgages have risen sharply in cost during the year, and jumped in the aftermath of the mini-budget, when investors were spooked by big tax cut pledges that were set out without specifying how they would be paid for. | New fixed-rate mortgages have risen sharply in cost during the year, and jumped in the aftermath of the mini-budget, when investors were spooked by big tax cut pledges that were set out without specifying how they would be paid for. |
| Mr Boulger said that the buy-to-let sector was likely to see more "stress" than other areas of the mortgage market. | Mr Boulger said that the buy-to-let sector was likely to see more "stress" than other areas of the mortgage market. |
| He said that some landlords would find it difficult in some areas to secure a mortgage of more than 50% or 60% of a property's value. | He said that some landlords would find it difficult in some areas to secure a mortgage of more than 50% or 60% of a property's value. |
| That, added to tax changes which have led some landlords to consider selling up, would reduce availability for tenants, he said. | That, added to tax changes which have led some landlords to consider selling up, would reduce availability for tenants, he said. |
| About 40% of landlords have a mortgage on their rental properties. | About 40% of landlords have a mortgage on their rental properties. |
| Prices set to fall | Prices set to fall |
| Earlier this week, the Nationwide Building Society said that UK house prices fell by 0.9% month-on-month in October, the first monthly decline in 15 months. | Earlier this week, the Nationwide Building Society said that UK house prices fell by 0.9% month-on-month in October, the first monthly decline in 15 months. |
| The drop was the largest since June 2020, at the height of the pandemic, the mortgage lender said. | The drop was the largest since June 2020, at the height of the pandemic, the mortgage lender said. |
| Chris Rhodes, chief finance officer from the Nationwide, said that the outlook for the housing market was "very uncertain". | Chris Rhodes, chief finance officer from the Nationwide, said that the outlook for the housing market was "very uncertain". |
| Mr Boulger forecast a 10% to 15% drop in house prices from peak to trough, partly because the ability to borrow was being curtailed. | Mr Boulger forecast a 10% to 15% drop in house prices from peak to trough, partly because the ability to borrow was being curtailed. |
| Joanna Elson, chief executive of debt charity the Money Advice Trust, called for a public awareness campaign to urge people to seek help if they were struggling to make mortgage repayments. | Joanna Elson, chief executive of debt charity the Money Advice Trust, called for a public awareness campaign to urge people to seek help if they were struggling to make mortgage repayments. |
| She also called for some of the requirements on financial support to help with mortgage payments to be eased. | She also called for some of the requirements on financial support to help with mortgage payments to be eased. |
| There is also significant pressure on renters, which made up the majority of those seeking help from the charity, she told MPs. | There is also significant pressure on renters, which made up the majority of those seeking help from the charity, she told MPs. |
| People tended to prioritise paying for "the roof over their heads", she said. | People tended to prioritise paying for "the roof over their heads", she said. |
| Figures seen recently by the BBC suggest that people under 30 are now spending more than 30% of their pay on rent - marking a five-year high. | Figures seen recently by the BBC suggest that people under 30 are now spending more than 30% of their pay on rent - marking a five-year high. |
| Experts said this level of rental costs is unaffordable and warned that younger tenants could face a difficult winter as costs and energy bills mount. | Experts said this level of rental costs is unaffordable and warned that younger tenants could face a difficult winter as costs and energy bills mount. |