Chancellor's measures welcomed - buy to let mortgages

26 November 2008

A cash injection for the housing sector that was announced in the pre-Budget report has been welcomed by an industry insider.

Chancellor Alistair Darling unveiled an extra £775 million aimed at boosting building and regeneration projects in his report on Monday.

Richard Parker, partner and head of housing at PricewaterhouseCoopers, said that the money could help those with buy to let mortgages.

"Some of the funding for rented homes could be used rapidly if it is applied to housing that had been initially built for shared ownership," he explained.

The finance could be used to "kick start" some large developments that have been delayed by the recent market conditions, he added.

Mr Parker stated that the funding should be "relatively easy" to inject into the industry as long as sufficient processes are put in place.

Meanwhile, demand for private rented property is being buoyed by the current economic situation, as home seekers are choosing to rent while waiting to be approved for a mortgage, according to the National Landlords Association.