Additional powers to control BTL mortgage market
Mark Carney the Governor of The Bank of England (BOE) has for some time now been making the point that the UK buy-to-let mortage market poses a threat to Britain’s economic recovery, at present certain controls exist for the residential mortgage market that do not for the Buy-To-Let (BTL) mortgage market.
The Governor of the BOE had previously asked for the Bank to be given “additional powers” over buy-to-let mortgages, George Osborne appearing before the Treasury select committee this week reportedly said that he had “granted those powers” to the Bank.
It is expected that these additional powers will bring buy-to-let mortgage rules more in line with those of the residential mortgage, stricter regulations were introduced last year to residential mortgage applications designed to prevent the housing market from overheating.
The additional regulations when implemented could make it more difficult to become a buy-to-let landlord, if that is the case what effect will that have on the private rented market property supply? The private rented sector is already being bombarded with new regulations surrounding tenancy agreements, tenants rights, environmental and safety issues, right-to-rent and so on, stronger regulation of the buy-to-let mortgage is just another hurdle to add to the list for landlords.
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