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More hints about buy-to-let crackdown

The Bank of England Governor Mark Carney is the latest influential figure to hint that there may soon be additional restrictions on landlords’ abilities to obtain buy-to-let mortgages.

In an interview with the Financial Times, Carney said he was concerned about high levels of lending for buy-to-let mortgages, highlighting a possible risk that large numbers of investors would try to sell at the same time if house prices slumped.

"So we do have to be careful around that sector. And I think collectively there are a number of things happening and we are watching it, we are watching it closely and we will take action," Carney told the FT.

Richard Lambert, CEO at the National Landlords Association (NLA), said the government is pushing many landlords to the conclusion that they have almost no other option than to sell up.

“There are still big questions as to what the Governor has in mind to 'tackle' buy-to-let, especially given the role George Osborne has played in significantly cooling the market in recent months,” he said, “Mr Carney has an important and very difficult job to do, but repeatedly and publicly labelling a sector which plays such an important role in supporting economic recovery as dangerous is hardly helpful. If the Governor is truly worried about landlords dumping their properties, then his best bet would be a quiet word in the ear of our anti-PRS Chancellor.”

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  • Peter Lassman

    Well What are the Government worried about, if people do dump properties as they are saying then, They have won, HOUSES will be available for first time Buyers, which is what the keep banging on about, OH I forgot, people can't afford to buy Houses the Government keep saying, so maybe they want a property Crash so the Big Cats involved can buy more and expand their Empires. But what I don't understand is why the Government keep trying to blame the BTL sector of Landlords supplying houses for people to live in, as Ordinary Citizens have the opportunity to buy Houses just as BTL Landlords do, so why don't they? Maybe because most of the youngsters these days want to enjoy life and not be burdened with Mortgage Bills and they want to Spend Spend Spend which keeps the Economy going and also
    1. The Council sold all their houses in line with the right to buy, A GOVERNMENT DECISION
    2. The Councils do not build Houses any more A GOVERNMENT DECISION
    3. Councils are still selling off their own properties when they fall into a bad condition as they can't afford to Repair them as theirBudgets keep getting cut A GOVERNMENT DECISION
    4. The Government keep cutting H Benefit to stop people being able to afford Affirdable Housing that BTL Investors supply A GOVERNMENT DECISION
    Maybe the GOVERNMENT should look upon the BTL Landlord as a friend and Life Line and thank us for Housing Peoe as they can not Peter


    Absolutely, but we are portrayed by the media as money grabbing, uncaring individuals, just out to make a 'fast buck'.

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    I couldn't agree more with all of the above Peter but I'd also ask the question as to why Mark Carney thinks landlords are all going to sell up if prices slumped. I don't understand his reasoning. Is there some evidence that this has happened elsewhere? And so what if they did?

    The total incompetence of the Government is astounding but throw Mark Carney's misguided views into the pot as well and there's no way of telling what's going to come out next.

    Or am I missing something? Is there factual evidence that Mr Carney is basing his statement on? If there is I really would like to see it and I'll be the first to say 'fair enough', but as the Governor doesn't seem to refer to any case history I can only assume he has no understanding of why people are in the landlording business.

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    Surely landlords are more likely to sell when prices are high. Only a fool would sell if the prices slumped. Why would you unless you had to? And this man is in charge at the Bank of England! It beggars belief!

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    Blimey - good job i read your comment to the end, Peter! I was about to lambast you then realised you were talking sense :-)

    I would add:
    Everybody loves to attack BTL landlords - the politics of envy combined with the British tradition of disliking it when people are successful, add to that the convenient diversion it provides from the real cause of the problem - not enough houses being built.

    First-time buyer properties eh? let me point out a couple of things:
    (1) Many landlords by larger properties (i.e. NOT first-time buyer properties) which they then convert to flats in order to, oh guess what, satisfy market demand
    (2) I bought two "first-time buyer" properties this year. I was the first person to view one of them in the three months it had been on the market, the second I tendered £15,000 below guide price and was the only bidder. Where were all the first-time buyers fighting me for these purchases???

    If landlords all dispose of their properties it may well cause a house price crash (for which landlords would of course get the blame) and prove a disaster for the housing market upon which the UK economy largely depends. Quite a few smaller investors (myself included) who bought into rental to provide a pension, would instead have to rely on the state to supplement our income.

    I'm truly sorry that it makes people unhappy that I paid attention in school, then went to work and worked very, very hard until I could afford to invest in property [he gasps in exasperation].

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    Tis the season of badwill towards landlords.
    We have been hit by this ludicrous new initiative where we have to attend a course in order for the Welsh Assembly to ascertain if we are 'fit and proper' to rent out OUR property. Then they are going to charge us to register out properties?
    With all the above, it is evident that the 'powers that be' are having a purge on the buy to let sector?

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    Hi Everyone

    My first time on your site, What we are seeing with the proposed Government meddling in the BTL market shows their complete lack of understanding of what's going on for normal people, or should I say THEY DON'T CARE.

    I suppose its difficult when you come from a privileged background and never had the issue of worrying about paying utility bills or feeding your family, My advice is sit back and let then hang themselves on yet another LAUGHABLE decision which will send massive ripples across the lending sector, the Housing sector, the tenants who will have no choice but to pick up the bill so draining yet more spending ability from the high street.
    George Osborne single handedly is about to lose more votes for the conservatives than he can even imagine. Votes from the top wage earners right down to the voters receiving benefits
    Of course the Government will scramble around trying to fix it but as most governments do they are always trying to fix problems instead of preventing them.

    Idiots springs to my mind.

  • Peter Lassman

    It's a Synicle way of looking at things but it's almost as if somebody somewhere is trying to stop lots of Landlords getting wealthier!! by attacking our Pockets and Orifits, Maybe there's a hidden agenda to attack people who are trying to better themselves and it's the turn if the Private Landlord and certain groups of people don't want Landlords to succeed and become more affluent, Or of course the obvious answer is the right one, That we as Private Landlords are making the Government look silly by doing what they cannot do, and that's House People and now the Powers that be are scared that we the Private Landlords will Start asking the Government to pay us Wages as well, just like the fools that sleep in Parlaimentary Sessions instead of Thinking and Voting to help this country like they should


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