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

Conveyancing delays push exchange times past 100 days

The average home that exchanged contracts in April had gone under offer 104 days...

Equifinance launches broker portal for second charge cases

Equifinance has released its new broker portal, ECHO, giving introducers an end-to-end process for...

Beyond the walk: Mortgage leaders talk mental health – part 11

The Mortgage Industry Mental Health Charter (MIMHC) began its third annual 144-mile Walk &...

Third of protection clients nearly cancelled cover before claiming

Almost a third of protection claimants at Waddle Insurance had considered cancelling or had...

The Beverley joins Brilliant Solutions mortgage club panel

Beverley Building Society has joined the Brilliant Solutions Mortgage Club lender panel in a...

Latest publication

Other news

Conveyancing delays push exchange times past 100 days

The average home that exchanged contracts in April had gone under offer 104 days...

Equifinance launches broker portal for second charge cases

Equifinance has released its new broker portal, ECHO, giving introducers an end-to-end process for...

Beyond the walk: Mortgage leaders talk mental health – part 11

The Mortgage Industry Mental Health Charter (MIMHC) began its third annual 144-mile Walk &...