New powers over buy-to-let lending.

Earlier this week the governor of the Bank of England, Mark Carney expressed concerns about the buy-to-let market, he said he was worried that if house prices began to fall, investors might sell in large numbers, which could destabilise the economy.

The Treasury has suggested that the Bank of England could order banks and building societies to limit the sums they lend to landlords, this would bring buy-to-let more in line with the way it now works for the ordinary household mortgage, the Bank’s Financial Policy Committee (FPC) has already implemented such measures in that sector.

The Chancellor, George Osborne, reportedly said: “Ensuring that Britain’s financial services sector is resilient enough to withstand future shocks is a key part of the government’s economic plan.”

Commenting on the consultation by HM Treasury on potential powers of direction for the Bank of England’s Financial Policy Committee over the buy-to-let mortgage market, Council of Mortgage Lenders (CML) director general Paul Smee said:

“We understand the rationale for putting the macroprudential tools at the Bank of England’s disposal, but also recognise that this does not necessarily mean they will be used. In our view, buy-to-let does not constitute a market that currently requires further macroprudential intervention, especially as the effect of several recent tax changes is yet to be fully felt and evaluated. We urge policymakers to be mindful of the risk of unintended consequences that could adversely affect the private rented sector, alongside their focus on ensuring that the buy-to-let market does not pose a threat to financial stability.”

 

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

FMB Supports Construction Leadership Council’s Health and Wellbeing Strategy

The Construction Leadership Council (CLC) Health, Safety and Wellbeing Strategy is a welcome and much needed new initiative to help drive industry change, says the Federation of Master Builders (FMB). The FMB’s CEO Brian Berry has joined more than 140 industry leaders at the Construction Leadership Council’s launch of its comprehensive Health, Safety and Wellbeing…
Read More
Clacton on Sea cash injection
Breaking News

20% Property Premium to Live Beside Britain’s Best Beaches

The latest research from eXp UK has found that homebuyers hoping to live by one of Britain’s best beaches can expect to pay almost 20% more on average compared to the wider local market, amounting to a seaside property premium of over £46,000. The research* by eXp UK analysed property prices in postcode districts surrounding…
Read More
Breaking News

Houseboats hand London homebuyers 57% saving

Houseboats hand London homebuyers 57% saving versus bricks and mortar The latest research from Benham and Reeves has found that London homebuyers could save as much as 57% on their property purchase by choosing a houseboat over a traditional bricks and mortar home, with the average cost of a houseboat across the capital coming in…
Read More
Breaking News

Silverstone fails to take pole when it comes to race track property premiums

The latest research from Yopa has found that while Silverstone may be the spiritual home of British motorsport and host of this weekend’s Formula 1 Grand Prix, it is far from the most prestigious racing venue when it comes to local property prices. In fact, homes near other race circuits across Britain command far higher…
Read More
Breaking News

Section 8 Reforms: What Landlords Need to Know About Longer Notice Periods and Stricter Rules

By Allison Thompson, National Lettings Managing Director, LRG As the Renters’ Rights Bill continues its progress through the House of Lords, landlords should be preparing for a much tighter framework around possession. One of the most significant changes proposed is the reform of Section 8, the legal route for regaining possession where a specific reason…
Read More
New Build for Merseyside
Breaking News

British new-build demand sees quarterly decline

The latest new-build market insight from Property Inspect has revealed that buyer demand for new-build homes remained largely static between the first and second quarter of this year, although buyer appetites for new homes remained robust in a number of major cities. The New-Build Demand Index (Q2 2025) from Property Inspect provides a view of…
Read More