Foundation Home Loans is revamping its BTL criteria to accept single household properties let to housing association and local authority tenants.
These changes have been made at a time when demand for social housing continues to grow, according to the lender.
In England and Wales eligible housing associations and local authority applicants must appear on the government’s register of social housing providers and must not be charities.
In Scotland, such applicants must appear on the Scottish Housing Regulator register with landlord type “local authority” or “registered society — non charitable” and be listed as “compliant.”
The maximum lease agreement is 60 months but onward tenancy agreements between tenants and housing associations and local authorities cannot exceed 36 months.
A maximum loan limit of £3m applies and unacceptable tenancy types include HMOs, supported accommodation, hostels, nursing homes, car homes and assisted living/sheltered housing.
“At Foundation, we are always looking for ways to broaden the opportunities available to brokers and their landlord clients,” said Tom Jacob, director of product and marketing at Foundation Home Loans (pictured above).
“Accepting lettings to housing associations and local authority tenants is a natural step that supports landlords in achieving secure, predictable returns, while also helping to meet the critical demand for affordable housing.”
