Landlords believe Selective Licensing will put off newcomers

Published on

John Heron, Paragon Mortgages

74% of landlords believe that if brought into force nationally, Selective Licensing will deter new landlords from entering the buy-to-let market.

Landlords were asked for their views on Selective Licensing and other regulations affecting the landlord and buy-to-let market in the Paragon Mortgages quarterly trends survey.

60% of landlords said they would not invest in buy-to-let property where Selective Licensing was in force. This sentiment was shared almost equally by professional landlords (60%) and private investor landlords (61%). Just 20% believe that Selective Licensing will not impact on their rental business.

Those surveyed were also asked to comment on other regulations impacting the landlord market on what they felt would hit them the hardest. City Wide Licensing and Article 4 for HMOs were top in terms of what landlords thought had the potential to impact their business the most (14%).

John Heron (pictured), Paragon’s director of mortgages, said: “It is often suggested that the buy-to-let market is not regulated enough. In reality the market is heavily regulated and landlords have to comply with more than 100 regulations.

“It is clearly important that landlords who operate in the buy-to-let market are regulated and run responsible businesses. However, what our survey shows is that landlords are becoming increasingly concerned about Selective Licensing and other areas of regulation.

“If Selective Licensing is employed in the appropriate way it will be beneficial in areas that need it, but there is a danger of putting off new landlords – which the market needs in order to grow – if a broad brush approach is taken.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Later life lending must become ‘mainstream priority’, following FCA reform speech

Will Hale, chief executive of Key Advice & Air, has urged the mortgage industry...

FRP expands with acquisition of Arc & Co

FRP has strengthened its presence in the real-estate finance market with the acquisition of...

Metro Bank cuts rates and returns to 80% buy-to-let lending

Metro Bank has made further cuts across its residential, near-prime and buy-to-let product ranges,...

Conveybuddy appoints new business development executive

Conveyancing distributor conveybuddy has appointed Connor Nixon as its new business development executive, strengthening...

Masthaven joins TRM panel to widen access to bridging finance

The Right Mortgage & Protection Network has added Masthaven Finance to its lender panel,...

Latest publication

Other news

Later life lending must become ‘mainstream priority’, following FCA reform speech

Will Hale, chief executive of Key Advice & Air, has urged the mortgage industry...

FRP expands with acquisition of Arc & Co

FRP has strengthened its presence in the real-estate finance market with the acquisition of...

Metro Bank cuts rates and returns to 80% buy-to-let lending

Metro Bank has made further cuts across its residential, near-prime and buy-to-let product ranges,...