Only 39 mortgage-to-rent deals in place

Only five mortgage-to-rent arrangements to assist distressed borrowers have been completed by the country’s main banks since it was set up two and a half years ago.

A further 34 have been agreed by smaller banks and sub-prime lenders but this is still far short of the Government’s target of 500 a year.

Housing groups say that, without the enthusiastic support of the principal lenders, the scheme will fail.