More hints about buy-to-let crackdown

Added on December 18th, 2015 in Property News

The Bank of England Governor Mark Carney is the latest influential figure to hint that there may soon be additional restrictions on landlords’ abilities to obtain buy-to-let mortgages.

In an interview with the Financial Times, Carney said he was concerned about high levels of lending for buy-to-let mortgages, highlighting a possible risk that large numbers of investors would try to sell at the same time if house prices slumped.

"So we do have to be careful around that sector. And I think collectively there are a number of things happening and we are watching it, we are watching it closely and we will take action," Carney told the FT.

Richard Lambert, CEO at the National Landlords Association (NLA), said the government is pushing many landlords to the conclusion that they have almost no other option than to sell up.

“There are still big questions as to what the Governor has in mind to 'tackle' buy-to-let, especially given the role George Osborne has played in significantly cooling the market in recent months,” he said, “Mr Carney has an important and very difficult job to do, but repeatedly and publicly labelling a sector which plays such an important role in supporting economic recovery as dangerous is hardly helpful. If the Governor is truly worried about landlords dumping their properties, then his best bet would be a quiet word in the ear of our anti-PRS Chancellor.”

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