Any scheme set up to bolster the number of people buying property is likely to be of concern to landlords with buy to let insurance - but in the current climate the reality is somewhat different.

Research from Rightmove reveals that almost half of potential first-time buyers reckon they have a better chance of being able to purchase their own home because of the Government’s FirstBuy scheme.
The FirstBuy initiative lets FTBs get the keys to a property with just a 5% deposit.

A further 20% lump-sum comes through an interest-free loan to be paid back over 60 months which has been funded jointly by the Government and the house builder.

But will the scheme make much of a difference in terms of cooling rental demand?

That seems unlikely because no matter how successful it is, FirstBuy is restricted to a maximum 10,500 new-build property purchases.

It does not cover any other type of FTB purchase.

As such, while it may remove some pent-up pressure from the rental sector, it is unlikely to have such an impact on lettings demand that landlords could reasonably expect rents to fall.

Conditions are almost perfect for landlords at the moment, with economic difficulties and restricted buying serving to really stoke up lettings demand.

That said, landlords should never get complacent and it is crucial that they take out landlord insurance to make sure they are protected against all eventualities.