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 

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