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

Target Group posts record client satisfaction score

Target Group has reported its highest client satisfaction score to date, six months after...

Four-month fall in sales agreed signals weaker mortgage market

Mortgage lenders face a potentially weaker final quarter after property sales agreed fell by...

HSBC to raise residential and buy-to-let mortgage rates

HSBC UK is increasing mortgage rates across much of its residential and buy-to-let range...

Cumberland expands school money workshops into second year

The Cumberland Building Society is extending its financial education programme for primary school children...

Prime London price falls could narrow the gap for aspiring home movers

Falling values at the top of the housing market could give some established homeowners...

Latest publication

Other news

Target Group posts record client satisfaction score

Target Group has reported its highest client satisfaction score to date, six months after...

Four-month fall in sales agreed signals weaker mortgage market

Mortgage lenders face a potentially weaker final quarter after property sales agreed fell by...

HSBC to raise residential and buy-to-let mortgage rates

HSBC UK is increasing mortgage rates across much of its residential and buy-to-let range...