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Agents and landlords deride Labour BTL planThe letting agent and landlord community is still coming to terms with the news that Labour wants councils to have the power to ban buy-to-let investors purchasing new-builds in what the party is to designate as 'housing growth areas'.

The announcement, made by party leader Ed Miliband yesterday, follows on four already-announced Labour policies aimed at what it calls 'reforming' the private rental sector - the introduction of rent controls, mandatory longer-term tenancies, restrictions on tenant evictions and a compulsory register of landlords.

Many individual landlords and private rental sector analysts have clogged social media with complaints that the new buy to let 'ban' would drive investors into the second hand market, causing exactly the same pressures as with new builds and so making them less affordable for local owner-occupier purchasers.

Other agents and landlords say the Labour ban would effectively reduce the quality of the private rental sector at a stroke, by obliging any expansion of the stock to take place through existing homes - many of which are less suitable and less attractive to tenants than new-builds.

The Residential Landlords' Association says the ban on BTL investors purchasing new-build homes will "choke off investment in the only housing tenure that has been growing" and is driven too much by concerns about the level of international off-plan purchasing of new homes in central London.

Meanwhile the National Landlords' Association says Labour has failed to understand the difference between 'buy to let' and 'buy to leave'.

"It's only large scale investors who buy properties and leave them empty: not landlords." says NLA chief executive officer Richard Lambert.

Comments

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    Ian LOL ! Let's hope it is.

    • 18 October 2014 04:47 AM
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    It is well known that builders have lots of cousins and trusty friends. Many of these are estate agents of course.

    You do not believe this You wait and see what happens when when builders are only allowed to sell new build to private investors. Genuine buyers will get little chance to make a purchase. 'Tactical' buyers will make all the purchases and promptly sell the property on to BTL groups.

    A lot of small businesses swear by labour governments saying that they are so impractical it gives them a license to take almost free money from the government and councils.

    • 17 October 2014 08:54 AM
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    Surely the back of the Laour "Fag Packet" must be full by now!

    • 17 October 2014 07:36 AM
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    Se our web site for what we think of Labour regaining power. Look at the blogs.

    • 17 October 2014 07:35 AM
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    Again - another potential policy which has been "thought" out by taking into account what goes on in the square mile. Up and down the country there are hundreds/thousands of new developments which are attractive to the small investor looking for one or two units.

    We actively encourage Landlords to buy new builds and work with developers to allow Tenant viewings between exchange and completion (where possible). The initial void is then minimum. The Landlord benefits from NHBC and equipment guarantees etc. etc.

    Labour are looking at screwing another integral part of the PRS. God help us all if they win the next election. Just WHO advises them on the PRS I wonder

    • 17 October 2014 05:40 AM
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