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

The technology that matters doesn’t make the decision

We have a tendency when talking about mortgage technology to start with what it...

Record healthcare demand highlights protection opportunity

Demand for private healthcare remained close to record levels at the start of 2026,...

Nearly 900,000 borrowers lock in mortgage deals early

Nearly 900,000 mortgages were locked into a new deal up to six months before...

The Marsden eases expat criteria and cuts documentation requirements

Marsden Building Society has revised its expat mortgage criteria, removing its minimum income requirement...

Rental arrears among landlords fall to record low

The proportion of landlords experiencing rental arrears has fallen to its lowest level since...

Latest publication

Other news

The technology that matters doesn’t make the decision

We have a tendency when talking about mortgage technology to start with what it...

Record healthcare demand highlights protection opportunity

Demand for private healthcare remained close to record levels at the start of 2026,...

Nearly 900,000 borrowers lock in mortgage deals early

Nearly 900,000 mortgages were locked into a new deal up to six months before...