Buy to let doesn't need more regulation, just better credit flow
Council of Mortgage Lenders
Yesterday, the CML reported that new buy-to-let lending increased for the second consecutive quarter in the final three months of 2009...
New figures from the Council of Mortgage Lenders (CML) have prompted the National Landlords’ Association (NLA) to express concerns over the imminent regulation of buy-to-let lending by the Financial Services Authority.
Yesterday, the CML reported that new buy-to-let lending increased for the second consecutive quarter in the final three months of 2009.
There were 25,800 new loans advanced, up from 23,700 in the previous quarter but down from 38,000 in the same period of 2008.
Overall in 2009, buy-to-let lenders possessed 5,700 properties and the number of mortgages in arrears declined.
NLA head of communications, Simon Gordon, comments: “It is encouraging to see the total number of buy-to-let repossessions remain a small percentage of the market, at 0.46% of the total book, similar to the annual rate for the residential mortgage market.”
Mr Gordon also believes the figures suggest the buy-to-let market is far more robust than originally feared and urges the Government to take note of this when considering whether regulation is really necessary.
He adds: “Rather than wasting effort on further legislation they should be encouraging lenders to get credit flowing again.”
Meanwhile, Jonathan Moore, director of lettings portal easyroommate.co.uk points out that the rental market changed in 2009, prior to which some landlords were as inflexible with their tenants as they had been in the boom times.
He believes landlords have now “wised up” to the dangers of void periods, and are doing their utmost to keep their properties occupied – even if it means lowering rents.
“As a result, monthly mortgage bills are being met”, Mr Moore concludes.
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