We have always been clear in our opposition arguing that it would prejudice investment in the private rented sector and particularly prevent newbie landlords investing in property for the first time as the judged affordability by lenders would have to be based on an individuals income as a posed to the relationship between the rent and cost of borrowing (an initiative which heralded the arrival of buy-to-let in the the late 90s).
Landlords cannot breath a complete sigh of relief yet though. The amendments to the original proposal must now be voted through the European Parliament. The European Council will then decide its position and then the three bodies, the council, parliament and commission will then enter negotiations over the final text.
The saga looks set to continue although the outcome looks more promising. We'll keep you posted!
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There were large numbers of priced out first time buyers hoping that this directive would lead to a sell off of btl properties and thus a "correction" in house prices. Luckily for us, it was not to be and we can continue to profit from their misfortune. It seems to me that this is the best time to invest in more btl properties as clearly the UK government is on our side, rather than on the side of first time buyers who still cling to the outdated belief that everyone should have a right to a home of their own. Don't get me wrong, I fully accept that btl buy-to-let distorts the housing market, the economy and society, but as long as my bank balance is OK, I'm happy.
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