View all articles
According to the Financial Times, the governor of the Bank of England is very concerned about the buy to let housing sector and is watching it closely. He is hinting that the bank may soon introduce further restrictions on buy to let borrowing:
******Whoops! Looks like this is an old post that isn’t relevant any more :/ ******
******Visit the blog home page for the most up to date news. ******
“So we do have to be careful around that sector. And I think collectively there are a number of things happening and we are watching it, we are watching it closely and we will take action,” said Mark Carney.
The Big Sell
One of the things that concerns Carney is the prospect of buy to let investors all trying to sell their properties at the same time in the event of a housing market slump. This could be potentially catastrophic on many levels.
NLA Speaks Out
However, Richard Lambert from the National Landlords Association is claiming that the government is actively pushing landlords into doing exactly that, by making it increasingly difficult to run a profitable buy to let business.
“There are still big questions as to what the Governor has in mind to ‘tackle’ buy-to-let, especially given the role George Osborne has played in significantly cooling the market in recent months,” he said, “Mr Carney has an important and very difficult job to do, but repeatedly and publicly labelling a sector which plays such an important role in supporting economic recovery as dangerous is hardly helpful. If the Governor is truly worried about landlords dumping their properties, then his best bet would be a quiet word in the ear of our anti-PRS Chancellor.”
