Call me back
call-to-action

Bank of England To Curb Buy-To-Let Lending?

Fri 23 Oct 2015

[Source: Property Industry Eye, 23rd October 2015]

The Bank of England is to be given powers to control buy-to-let mortgage lending.

In what could be a highly significant move, Chancellor George Osborne said that he will extend the powers of the Bank and the Financial Policy Committee to the sector.

It follows concerns that buy-to-let borrowers could be particularly exposed in any downturn in the market, and that this could rock the wider housing market and the general economy.

Speaking to the Treasury Committee, Osborne said: “I think it’s true that, if you look historically at the UK, one of our biggest challenges has been managing credit booms and house price cycles. That’s why we created the Financial Policy Committee, in part to try to manage some of those risks.”

The Bank of England had earlier said that the Government intended to launch a consultation on buy-to-let lending this winter.

However, this seems to have been overtaken by Osborne’s revelations.

He told the Treasury Committee: “The governor of the Bank and the FPC have asked for additional powers over buy-to-let mortgages which weren’t included, and we have granted those powers.

“I’d better wait until we actually make the announcement, but (it will be) as soon as possible.”

It is not clear what those powers might be, but essentially they could make it harder for a landlord to borrow. Curbs could include a clampdown on the number of buy-to-let mortgages a landlord might have and caps on loan-to-value amounts.

Landlord bodies are likely to greet the news negatively, concerned that the Government’s stance is anti-private landlords.

Osborne’s revelations yesterday follow his Summer Budget announcement that some landlords will no longer be able to offset costs of borrowing against tax. While the Treasury says that only 20% of landlords will be affected by this, the Residential Landlords Association insists the proportion will be 60%. Savills has also produced sums which show that landlords currently making profits will be making losses when the new regime is implemented.

"The whole of the service, communication and problem solving was excellent. The advertising brought people round and within 2 weeks I had 2 good offers and the sale went through without any hitch. I was always kept in the picture in a very nice way and very satisfied with Lovetts"
Mrs Clarke

News Archive

December 2017

Our Sales Team outperforms UK agents on achieving asking price

Our Christmas Opening Hours and Emergency Contact

November 2017

The 7 key things to look for when choosing an Estate Agent

The Budget: What it means for the property industry

Guest blog: Could first time buyers be set for a Stamp Duty cut?

Our Anne calls time on a great career!

St Neots Property Prices: The Lowdown

Interest rate increase

October 2017

Don’t be haunted by ghost gazumping

'It was like a pig sty'

Are Landlords unprepared for the ban?

They came and ate cake!

Landlord open evening, October 2017: Open to all

September 2017

Interest rates remain the same – but a future increase is coming

Average rents surge to a new high for 2017

I’m not Willy Wonka and Lovett’s isn’t a chocolate factory

Guest blog: How to identify smoke damage in your rental property

One thing you shouldn’t do when the price isn’t right

August 2017

The Great Outdoors has a big impact on a property’s value

Beat the Back to School Rush

What's happening with House Prices in St Neots?

Life onboard a dragonboat

Resolving Deposit Disputes With Tenants

July 2017

Guest Blog: Can Mortgage Holders Withstand Rises in Interest Rates?

Ask The Expert: 'I am currently in a fixed rate mortgage, is it worth swapping mortgage deals as the rates are much lower?"

We're proud to be sponsoring the St Neots Community Awards 2017

Landlords and tenants in the St Neots area: How will the upcoming ban on tenant fees affect you?

The rise of retired renters

June 2017

Queen confirms tenant fees ban

UK rents fall for the first time in 8 years

Property Market Update, June - In Numbers

Guest Blog: Buy-to-let market hit by new reforms

The Election and the Private Rented Sector: In brief

May 2017

Looking after your money

Guest Blog: Bank of Mum and Dad Gets into the Top Ten UK Mortgage Lenders

Corporate golf day raises thousands for local charity

April 2017

Property Market Update – April 2017

Record Low Rate Launched on New Mortgage Product

Lovett's Support Dragon Boat Juniors

UK Lettings market starts to cool - but Cambridgeshire remains strong!

In Brief: 60 Seconds With.......Katie Williams, St Neots Town Centre Manager

Lovett partners with St Neots' first dedicated FM radio station

Top 5: Local Easter Egg Hunts This Weekend!

March 2017

Letting agents celebrate new protection for landlords and tenants

Guest Blog: Are you a buy-to-let mortgage prisoner?

When is the best time to sell your property?

Imminent changes to tax relief for residential landlords: In Brief

Landlords: Prepare early for EPC regulations changes

February 2017

Buy To Let Mortgages Hit Record Low

Home Repossessions Down in 2016 – But Will the Downward Trend Continue?

House Prices Surge In East of England

Government Announces New Housing White Paper

January 2017

Online Vs Traditional – The Battle Continues

2017: Property market predictions and trends

We smash our 2016 MacMillan Business Champions fundraising target

Keeping it in the family: Lovett MD passes on baton to his son

December 2016

Rents rocket across East Anglia as it closes gap on London

The Sales Property Market in PE19, 2015-16

Forecasting the Property Market: The Next 5 Years...

Autumn Statement - Chancellor Focuses On Housing

November 2016

Proposed Ban Of Tenant Letting Fees

October 2016

Lettings Market Update - November 2016

Sales Market Update - November 2016

Looking For An Investment Property?

Lovett's In The Community

Property Market Update – October 2016

Lovett Ringing The Changes!

Coffee Morning Is A Piece Of Cake!

September 2016

Download our free guide to selling your home in Cambs

Back to School - How Catchment Areas Shape Our Buying and Selling Habits

Property Sales Market Update – September 2016

New Government Landlord Tax Changes: In Summary

August 2016

Lovett At The Dragonboat Festival

August Property Market Update - Nationally and Locally

First Time Buyers Paying A Higher Price?

Our Charity Cycle Ride Raises Thousands For Local Charity

June 2016

**COMPETITION TIME**

July Property Market Update – Post Brexit

David’s Top 5 Tips……Preparing Your Home For Viewings!

Lovett's at Lettings Agent of the Year Awards

May 2016

May Property Market Update

Fancy New-Build Waterside Living From Just £159,995?

Our Rent Pledge Proving a Firm Favourite

Lovett’s Use Pedal Power for Woodlands Fundraiser

BREXIT: What now for the property market?

March 2016

Let Them Eat Cake!

February 2016

Right to Rent Legislation - We've Got It Covered

January 2016

West Cambs Set For Further Capital Growth

December 2015

Chancellor Announces Stamp Duty Hike for Property Investors

November 2015

Buy-to-Let Landlords Evening

October 2015

Bank of England To Curb Buy-To-Let Lending?

Recognition for 30+ Years As Local Property Experts

Dragonboat Success for Lovett Crew!

August 2015

Our Top 5 Local Spots for Summertime Drinks!

Advice For Concerned Kirby Landlords/Tenants

July 2015

Local Lettings Market Goes From Strength to Strength

June 2015

We Partner with Auction House

Professional Lettings Agents unite for SAFEagent Awareness Week 2015

May 2015

OnTheMarket.com announces 10million visits in 3 months

April 2015

The Sales Process

St Neots RUFC Festival of Rugby, 24th - 26th April

NEWS: Stamp Duty Overview

BLOG POST: The First 40 Years Are The Hardest.......

Welcome To Our Brand New Website!