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PRA changes will affect landlords’ ability to provide ‘quality affordable housing’

Mortgage brokers and lenders have been slammed by the National Landlords Association (NLA) for failing to do enough to communicate changes by the Prudential Regulation Authority to landlords.

A new survey undertaken by the association found that a number of buy-to-let borrowers remain oblivious about the new regime, partly because lenders and brokers have been too quiet over the PRA changes to buy-to-let lending.

According to the NLA, more than half of landlords are still unaware of the new framework.


The NLA’s latest research found that just 8% landlords reported that their lender had been in touch about the changes, while 16% said they had been contacted by their broker.

Some 68% of landlords said neither their lender nor broker had made contact with them about the changes.

However, the findings show that brokers and lenders may have concentrated their efforts on larger portfolio landlords, with 26% of portfolio landlords saying their broker had been in touch, and 9% saying their lender had made contact.

Richard Lambert, CEO at the NLA said: “The PRA’s changes will greatly affect the ability of landlords to find new finance and continue to provide good quality affordable housing to those who need it”.

He added: “We hope that that the reason such a significant number of landlords haven’t been contacted is because their existing deals are simply not yet close to expiry.

“However, it’s in lenders’ and brokers’ own interests to speak to landlords about the changes sooner rather than later, otherwise it could mean a missed opportunity in terms of new business.

“If landlords don’t get the right support and information about how the changes will impact their existing loans, then it could mean higher finance costs that many just won’t be able to absorb.”

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