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

West Brom launches interest-only and discounted products

West Brom Building Society has launched new interest-only and discount variable products and reduced...

The Right Academy targets 100 trainee advisers after strong start

The Right Academy, the specialist training programme from The Right Mortgage & Protection Network,...

Furness BS reports record app-to-offer rates

Furness Building Society is reporting record app-to-offer rates as it continues to roll out...

TMG boss gives staff day off after England’s 1am World Cup clash

TMG mortgage network founder and CEO Scott Thorpe has given all staff an extra...

Claire Cherrington on the challenges facing mortgage clubs

The mortgage club and compliance landscape is changing faster than at any point in...

Latest publication

Other news

West Brom launches interest-only and discounted products

West Brom Building Society has launched new interest-only and discount variable products and reduced...

The Right Academy targets 100 trainee advisers after strong start

The Right Academy, the specialist training programme from The Right Mortgage & Protection Network,...

Furness BS reports record app-to-offer rates

Furness Building Society is reporting record app-to-offer rates as it continues to roll out...