Increased costs 'may suppress buy-to-let mortgage market'

Date:Wednesday 27th May 2009
Author: Max Freedman

The increased costs associated with becoming a landlord may deter people from entering the market and thus suppress the buy-to-let mortgage industry.

This is the suggestion of Landlord Assist, which made its comments in the wake of government proposals aimed at regulating the rental market.

Under the terms of the plans, landlords would have to pay £50 to register for an annual license.

According to Landlord Assist, there is already sufficient regulation in the market and any more will depress the buy-to-let mortgage industry.

Managing director of the organisation Graham Kinnear said: "Landlords are already facing reams of legislation in a challenging economic climate, further registration schemes will only deter people from entering the market."

Earlier this month, Steven Hilton, a spokesperson for the National Landlords Association, claimed that landlords in the UK are suffering from a lack of buy-to-let mortgage lending.

He said that investors with a small number of properties right through to larger investor are being affecting by the shortfall.