Additional powers to control BTL mortgage market

October 23, 2015

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.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Residential projects remain under pressure

Infrastructure keeps UK construction moving through a sluggish spell Residential and non-residential projects remain under pressure, while infrastructure and utilities work give the industry a much-needed lift The value of underlying work starting on-site during the latest three months declined 2% and stood 18% below last year’s levels. Residential construction starts fell 8% against the…
Read More →
Breaking News

Homebuyers hold tight ahead of Autumn Budget

but should they wait to make their move?   The latest research from Yopa has revealed that mortgage market activity has reversed in recent months, with approvals falling at an average monthly rate of 3.9% over the last four months, having previously increased by an average of 1.5% per month over the previous four months, suggesting…
Read More →
Breaking News

House price growth accelerates in Q2

The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market continued to build momentum during the second quarter of 2026, with UK house prices increasing by 1.1%, while London recorded a second consecutive quarter of positive growth.   The Benham and Reeves Market Index Review…
Read More →
Breaking News

House prices hold steady despite impact of higher interest rates

House prices were unchanged in September (0.0%), following a -0.3% fall in August The average property price is now £298,441, compared to £298,395 in August Prices were also unchanged annually (0.0%) compared with September last year Northern Ireland continues to lead UK annual growth, at +7.4% Latest first-time buyer prices reveal what a 2.5% deposit…
Read More →
Breaking News

Breaking Property News 5/10/26

Daily bite-sized proptech and property news in partnership with Proptech-X. Architect-founded KnowYourNest brings property scores into the home search, with a free 1–10 score and full KnowYourNest reports from £9.95 By Author Andrew Stanton CEO Proptech-PR NestLink today launches free NestScore checks and KnowYourNest property intelligence reports for buyers and homeowners across England and Wales.…
Read More →
Breaking News

Gap between house prices and earnings narrows

Gap between house prices and earnings narrows – but higher borrowing costs limit affordability gains UK’s house price to income ratio falls from 7.6 to 7.3, an 11-year low, as earnings continue to outpace house price growth For first-time buyers, homes now cost less than six times earnings, falling from 6.1 to 5.9 However, monthly…
Read More →