BTL adds to UK property price growth

January 28, 2016

Some would say that the UK property boom is now bigger than that of the US in 2007 and we all know what happened there, the bubble burst. Mark Carney, Governor of the Bank of England reiterated his concerns about the growth of the Buy-to-Let  (BTL) mortgage when speaking to a panel of MP’s on tuesday.

According to the Evening Standard he was quoted as saying:  “We think developments in the buy-to-let market have warranted heightened scrutiny and have done so for some time.

“As a general rule, any time you see a very sharp and sustained increase in activity in one area … it at least bears heightened scrutiny.

“Every BTL mortgage reduces the supply of new homes for sale to regular mortgage applicants, because by definition every BTL holder doesn’t want to actually live in the house they’re buying. So BTL jacks up prices by reducing supply, and concentrates ownership in the hands of those most vulnerable to credit shocks”.

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

Strong rental supply continues amid seasonal slowdown in demand

Rental supply remained resilient in October, continuing the strong trend seen throughout 2025. Overall, year-to-date figures show new listings up 10% compared with last year, highlighting a sustained improvement in market supply. Average rents edged down by 3% in October 2025 compared with September 2025, settling at £575 per week. This slight dip aligns with…
Read More →
Home and Living

Why Choose Wooden Blinds for Your Home?

When it comes to selecting the right window treatments for your home, wooden blinds have long been a popular choice for many homeowners. They not only offer a classic and timeless aesthetic but also provide practical benefits such as durability, versatility, and eco-friendliness. If you’re looking for window coverings that combine style with functionality, wooden…
Read More →
Breaking News

Falling rates and rising wages ease first-time buyer challenge

Typical first-time buyer home now costs 5.9 times average earnings – the lowest ratio since 2015 Average monthly mortgage payment is now £1,087 – around £259 less than renting Inverclyde in Scotland is the most affordable location in Britain, Kensington and Chelsea in London the least affordable Amanda Bryden, Head of Mortgages, Lloyds: “Lower mortgage…
Read More →
Rightmove logo
Breaking News

Mansion Tax on Homes over £2 million

Comment on Mansion Tax being introduced for homes over £2 million and £5 million from April 2028 Colleen Babcock, Rightmove’s property expert says: “The property market needs less taxation not more, to encourage and enable movement. Today’s announcement of a Mansion Tax could lead to some distortion at the top end of the market, particularly…
Read More →
Breaking News

Autumn Budget 2025: Property Industry Reacts

The Autumn Budget has confirmed a series of major housing and property tax reforms that will reshape the market over the coming years. The measures place particular emphasis on higher value homes, revised council tax structures and long term planning reform. Below is a breakdown of the announcements that directly affect the property market, together…
Read More →
Breaking News

Solutions to fix construction skills

The Centre for Social Justice (CSJ) has released a report titled, ‘Skills to Build: Fixing Britain’s construction workforce crisis.’ After speaking to several organizations and having roundtables to garner a wide understanding of the sectors’ perspectives and needs, they have proposed twenty six recommendations that will fix the issues underpinning the skills crisis. Richard Beresford,…
Read More →