"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"
- Tom Jacob - Foundation Home Loans
Intermediary-only specialist lender, Foundation Home Loans, has confirmed that it has widened its buy-to-let criteria to accept single household properties rented to housing association and local authority tenants.
The lender explained that the criteria update offers brokers and their landlord clients more scope when structuring buy-to-let cases, at a time when demand for social housing continues to rise alongside wider affordability pressures across the UK.
For landlords, working with housing associations or local authorities can bring certain benefits. These include predictable income streams, a lower chance of rental voids, and the assurance that tenant vetting and inspections are carried out by the provider. Lease agreements can run for up to five years, giving landlords steady cashflow and longer-term stability.
Key details of Foundation’s criteria change include:
Available for both individual and limited company landlords on eligible single household buy-to-let and Solutions products.
In England and Wales, the housing association or local authority must be on the government’s register of providers of social housing and must not be a charitable organisation.
In Scotland, the housing association or local authority must be listed on the Scottish Housing Regulator register with landlord type ‘local authority’ or ‘Registered Society - non charitable’, and must be marked ‘Compliant’.
Maximum lease term is 60 months, with onward tenancy agreements between housing associations or local authorities and tenants limited to 36 months.
Excluded tenancy types include HMOs, supported accommodation, assisted living or sheltered housing, hostels, nursing homes, and care homes.
A maximum loan of £3m applies.
Rental assessment is based on the lower of contractual or open market rent, with tenancy agreements required to include appropriate break and make good clauses.
Foundation explained that the expansion supports its aim of enabling property ambitions across different needs while giving advisers the option to place more varied cases.
“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. “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."
“We want brokers to see us as their first choice for a wide variety of buy-to-let cases, whether that’s standard private rentals, more complex HMO or MUFB lending, and now, social housing arrangements. With a clear process, minimal extra documentation, and support from our regional account managers, we’ve ensured this new option can be accessed by brokers with confidence.”
