Foundation Home Loans, the intermediary-only specialist lender, has today (15th September 2025) announced an expansion of its buy to let criteria, confirming it will now accept single household properties let to Housing Association and Local Authority tenants.
The lender said this latest criteria enhancement gives brokers and their landlord clients further flexibility when structuring buy to let cases, particularly at a time when demand for social housing continues to grow in line with wider affordability challenges across the UK.
For landlords, letting to Housing Associations or Local Authorities offers a number of advantages, including predictable income streams, a reduced risk of rental voids, and the added reassurance of tenant vetting and inspections handled by the provider. Lease agreements can be up to five years, providing consistent cashflow and longer-term stability.
Foundation’s criteria highlights for this change include:
- Available to individual and limited company landlords, on eligible single household buy to let and Solutions products.
- England & Wales: the Housing Association and Local Authority must appear on the Government’s register of providers of social housing and must not be a charitable organisation.
- Scotland: the Housing Association and Local Authority 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; onward tenancy agreements between Housing Associations/Local Authorities and tenants cannot exceed 36 months.
- Unacceptable tenancy types include: HMOs, supported accommodation, assisted living/sheltered housing, hostels, nursing homes, or care homes.
- Maximum loan of £3m applies.
- Rental assessment is based on the lower of contractual or open market rent, with suitable break and make good clauses required in tenancy agreements.
Foundation said the change reflected its purpose of enabling home and property ambitions for everyone, while providing advisers with the ability to place more diverse and socially valuable cases.
Tom Jacob, Director of Product and Marketing at Foundation Home Loans, said:
“At Foundation, we are always looking for ways to broaden the opportunities available to brokers and their landlord clients. 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.”
For more information on Foundation Home Loans, please visit: www.foundationforintermediaries.co.uk
