Fears of further clampdown on buy-to-let sector

Buy-to-let investment has risen by  almost 100% over the last decade, at present it is  around 14.5% of new mortgage lending, this represents a very strong group of investors.

There are serious concerns coming from the Bank of England’s regulatory department that an increase in UK base rates, whenever this may be, could set off a wave of selling by buy-to-let investors, the Bank of England  appears ready  to introduce new rules to clamp down on the buy-to-let property market amid fears that the sector poses big risks to the UK property market and economy.

The Chancellor  told MPs last week that it is “highly likely” that he will give the Bank’s Financial Policy Committee (FPC) powers over the buy-to-let sector, he reportedly said: “The measures I have taken in the last couple of fiscal events – on additional stamp duty, on changes to mortgage interest relief – have been done in the knowledge the Bank of England has concerns about a bubble emerging in this market,”

The UK property market has been attacked by the government several times over recent months, those making returns on their properties seem to have been targeted  especially,  the gradual increase in base costs for buy-to-let investors has had an impact upon sentiment in general,  forthcoming 3% stamp duty surcharge has created something of a last minute rush by buy-to-let investors to beat the deadline.

 

 

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.

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