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.

[tds_create_account btn_bg_h="#000000" f_text_font_family="global-2_global" show_version="" tdc_css="eyJhbGwiOnsiYm9yZGVyLXJhZGl1cyI6IjUiLCJkaXNwbGF5IjoiIn19"]

Latest articles

Rents set to rise by up to 5% as supply falls

UK rental growth is accelerating again as higher mortgage rates keep would-be first-time buyers...

Buy-to-let company formations fall as landlord incorporation boom slows

The number of new buy-to-let companies being established has fallen this year as the...

Mortgage sector wellbeing improves but burnout risks persist

Mental wellbeing across the mortgage industry has improved over the past year, although long...

Cyber attacks on property businesses rise 17% as hackers target client data

Cyber attacks against UK property services businesses increased by 17% last year as agents...

Propertymark warns Scottish mansion tax could restrict housing market

Propertymark has warned plans for a Scottish “mansion tax” could make it harder for...

Latest publication

Other news

All eyes on Thursday’s rate decision

We've seen a number of lenders increase their rates over the past week, and...

Rents set to rise by up to 5% as supply falls

UK rental growth is accelerating again as higher mortgage rates keep would-be first-time buyers...

Buy-to-let company formations fall as landlord incorporation boom slows

The number of new buy-to-let companies being established has fallen this year as the...