Buying to let

This page is tells you how a family member can buy or build a property and rent it to a family member.The person who lives in the property pays rent to their relative.

This money is used to pay for buying or building the property - usually by paying a mortgage. A mortgage is a loan from to pay for buying or building the house. They pay some of this money back each month.

What type of property is it?

The relative who is buying or building to let can:

  • Buy any type of property that is for sale.
  • Build a new part of the property they live in now.
  • Build a new property in their garden.
  • Build a new property somewhere else.

The person who has bought or built the property is the landlord, and will have to make sure that they do everything that a landlord should.

What is good about buying to let?

There are some good things:

  • You have lots of choice about what to buy or build and where it is.
  • It can be a good investment for the person who buys or builds the property.
  • If the whole property is paid for they can pass it on to the relative who lives there.
  • The family is in control.
  • If you are going to share the property, the family can decide who else will live there.
  • If the family owns the property, you will not have to move out of it unless you want to.

What is not so good about buying to let?

There are some things that aren't so good:

  • Not everyone has enough money to do this.
  • Not everyone can get a mortgage to pay for buying or building the property.
  • If the person living in the property gets Housing Benefit, this might not be as much as they family has to pay each month. They might have to pay the rest themselves.
  • The person who owns the property must act as a landlord. Being a landlord has lots of responsibilities. They must pay for things like repairs.
  • If the council think the new property counts as part of the family home, they might not give Housing Benefit to someone who lives there.
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Learning Disability England
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Learning Disability England
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