Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Tuesday, November 22, 2011

More on EU BTL row

As much use as a...............
 A Member of the European Parliament for the West Midlands region has this week lambasted EU proposals which would bring Britain’s buy to let mortgage market into line with Continental practice. Leading mortgage brokers and estate agents have all agreed that the buy-to-let (BTL) sector needs EU intervention like a fish needs a bicycle – but fear that is what it is going to get, whether landlords and tenants want it or not. The issue for lenders is the UK is the only European country that has a thriving buy to let market. In other countries, property investment is carried out by companies or trusts rather than individuals.It is thought that if implemented the EU regulation could inflict huge damage to the private rental sector.

Please act now and sign up to the No10 petition “SAVE our buy-to-let mortgage”

Hitting out Nikki Sinclaire MEP said ‘’Some 1.4m landlords with buy-to-let loans are set to be affected by the proposed changes, and some might find they no longer qualify for a remortgage in as little as two years’ time, It is outrageous that the EU should try to dictate to lenders and borrowers the basis on which loans should be offered’’  “This unwarranted assault on the buy-to-let market will inevitably result in less affordable rental housing. It will also put the lives of 1.5million British investors and their tenants into turmoil.”

Potentially the new rules which would dry up funds would force hundreds of thousands of people to sell up.
The glut of homes on the market would then see supply outstrip demand, possibly causing prices to crash. Leaving those who have purchased during the past few short years being pushed into negative equity. The buy-to-let sector which is worth several billion pounds has recently reached its busiest levels since 2008 thanks to strong tenant demand.

The private rental sector is increasingly important to the economy, increasing by almost a million homes in just five years. But the EU plans could put fresh growth under threat by reducing the supply of properties.

Nikki Sinclaire MEP has claimed a number of MEPs have claimed that their constituents do not care about the new proposals and may use this excuse to support the proposed changes in  Committee or in  plenary .  Urging landlords AND tenants who have not already contacted their MEP to do so now.  ''immediately people would think this would effect just investors but in truth this will damage the whole housing market inculding ordinary homeowners ''

Nikki said if changes to the UK buy to let market need to be made they must be taken by our democratically elected politicians in Westminster, not by faceless and unelected bureaucrats in Brussels.

Please act now and sign up to the No10 petition “SAVE our buy-to-let mortgage”

Read more on our thoughts on EU regulation of BTL  here 

Get multiple landlord insurance quotes 
Bookmark and Share


grag said...

I srote to all the W Mids MEPs and only Nikki Sinclaire replied-an 11 line email- affirming her concern.I would have thought Mike Nattrass another W Mids MEP would have been interested in the proosal because in a previous life he ran avery successful commercial property agency business spanning both the West and East Midlands.

I also emailed the NLA as I am a member and hadnt seen anything on the subject in their regular e-newsletters recently. No response as yet.

Anonymous said...

I signed the petition. I dont have a BTL mortgage but I can certainly understand the implications of this becoming law.
Maybe, when thousands are out on the streets and homeless, our stupid government will wake up to reality. Or will they simply claim, as they are doing now, that "the country has a tremendous housing shortage so we must build millions of new homes on the green-belt".
As for the EU, well it seems they're just outright jealous of the successful British systems. If nothing gets done about this invasion of our property market then I hate to think what will happen.