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

First-time buyer numbers set to reach second-highest level in a decade

The number of people buying their first home is expected to rise sharply this...

The Leeds trims mortgage rates for new year

Leeds Building Society has cut mortgage rates by up to 0.26% across a wide...

Nationwide expects steady house price growth in 2026 as affordability pressures ease

Housing market activity proved more resilient than many expected in 2025, despite subdued consumer...

Rental prices hold steady as supply edges higher, Propertymark finds

Average rents agreed across the UK remained broadly flat in 2025, despite a rise...

Lloyds data points to shifting housing hot spots as regional markets diverge

The South West city of Plymouth topped Lloyds’ latest ranking of housing hot spots,...

Latest publication

Other news

From one-off deal to lifetime client: why protection reviews keep you connected

When I first started out in the mortgage industry, I used to think the...

2026 forecasts: why advice will matter even more this year

As we move into 2026, mortgage rules are changing and the aim is clear...

First-time buyer numbers set to reach second-highest level in a decade

The number of people buying their first home is expected to rise sharply this...