The Council of Mortgage Lenders has ticked off the government for not updating its Private Landlords’ Survey for some six years - if it had done so, it may have a “better understanding” of the needs of the private rental sector.
CML communications manager Bernard Clarke, in a blog on the council’s website, suggests the government needs to back off further reform of buy to let taxation and regulation.
He says the landlords have yet to absorb the effects of a series of tax changes that are likely to have significant implications for the private rented sector, and many of which come into effect in April - that’s just the end of next week.
Clarke says buy to let borrowers are diverse so are not necessarily appropriate to the government’s "one-size-fits-all" regulatory approach.
He warns that proposed powers would allow the Bank of England’s Financial Policy Committee to impose limits on buy to let Loan-To-Value ratios, and the interest cover ratio, which assesses rental income relative to the cost of the mortgage.
“We believe that [tools to control buy to let lending] should only ever be used with great sensitivity, and preferably only after consultation and the publication of analysis and assessment of the likely effects” he says.