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.
You May Also Enjoy
Rightmove asks government to consider retaining first-time buyer stamp duty threshold
5 Steps to Becoming the Best Estate Agent in Your Town
Breaking Property News – 25/07/24
Rightmove’s weekly mortgage tracker
Why You Should Invest in Herne Bay Property