Buy to let mortgage regulation ‘logical’, warns the FSA
By Simon Thompson
Buy to let mortgage regulation looks inevitable as financial watchdogs admit the proposal is ‘logical.’
Banks and building societies have lobbied long and hard against the proposal under the European Union consumer credit directive but seem ready to surrender the fight.
Rallying under the banner of the Council of Mortgage Lenders, the UK buy to let market has tried to persuade politicians in Europe that the private rental market in Britain is different from that across the continent.
The trouble is no one seems to care and no one is listening.
Many countries have thriving buy to let markets - but the borrowing is ruled personal rather than a business transaction.
UK lenders claim buy to let is a business - despite HM Revenue & Customs treating profits and gains as investment income.
Switching buy to let to consumer borrowing in the UK means lenders will have to underwrite the affordability based on the income of investors rather than on rent from a property.
The CML sulks that this means less lending and higher costs for lenders.
For borrowers, the new affordability rules will rule many landlords out of the market and possibly open the way for corporate investors.
The FSA's head of conduct policy Sheila Nicoll said: "We are very alive to the buy-to-let issue. One of the challenges is that that part of the market is much more important in other member states. We are deeply conscious of the concerns around that."
"We don't regulate buy to let and that is a matter for the government. We see the logic of the buy-to-let market being regulated alongside residential."
"We have to get over the message that one-size-fits-all is appropriate in the whole of the market. It does not necessarily work in the retail market."
The directive is under discussion in the European Parliament and is expected to gain approval as EU law next year.
Our friends at Glide Student, glide.co.uk know what makes students tick. In
the best tradition of successful student businesses, Glide was set up by
James Villarreal who was a student himself at the time.
With more and young people not expecting to get themselves onto the
property ladder until their 30s, it looks like more millennials are heading
down the route of renting, with many set to continue in the renting sphere
for many years.
A recent study by Accommodation for Students has revealed that two thirds
of students have more than one form of income, meaning that thousands of
students around the country are now working jobs on top of their degree
just to support themselves.
The annual AFS Student Lifestyle Survey explores key characteristics of
students’ life at university including course satisfaction, finances,
social life and eating habits. In 2018, the survey also included questions
about equal opportunities, diversity an
The first step to developing a good relationship with your student tenant
is understanding what they are looking for from the accommodation. For a
number of years, Glide have surveyed landlords and students and used these
results to enhance our understanding
Since 2013, AFS have regularly conducted the Landlord and Agent Letting
Survey trying to achieve a complete picture of how landlords and letting
agents view the student. accommodation market. In early 2018 we conducted a
further survey among our registered