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

Just Mortgages self-employed division nears 500 advisers after 10 years

Just Mortgages is celebrating 10 years of its self-employed division after growing from just...

Ageas teams up with Source Insurance

Ageas UK has joined Source's Insurance panel, expanding access to its home insurance products...

Buyer demand falls 15% year-on-year

Political uncertainty and higher borrowing costs have led to a 15% year-on-year fall in...

Mortgage Advice Bureau hires new group CFO

Mortgage Advice Bureau (MAB) has named Jo Stent as its next group chief financial...

OMS launches protection referral partnership with The Insurance Surgery

One Mortgage System (OMS), the CRM and loan origination platform for intermediaries and lenders,...

Latest publication

Other news

Just Mortgages self-employed division nears 500 advisers after 10 years

Just Mortgages is celebrating 10 years of its self-employed division after growing from just...

Ageas teams up with Source Insurance

Ageas UK has joined Source's Insurance panel, expanding access to its home insurance products...

Buyer demand falls 15% year-on-year

Political uncertainty and higher borrowing costs have led to a 15% year-on-year fall in...