EU Trying To Kill Buy To Let – sign the petition to STOP it now.

by Mark Alexander

14:24 PM, 19th November 2011
About 8 years ago

EU Trying To Kill Buy To Let – sign the petition to STOP it now.

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EU Trying To Kill Buy To Let – sign the petition to STOP it now.

The buy to let market will grind to a halt if EU proposals to change the way lenders hand out mortgages to landlords are approved, claim experts. Do not let this happen – sign the petition linked below.

The new rules will stop landlords buying new property to rent and restrict mortgage lending that will shrink the number of buyers and push house prices down.

This could put landlords and homeowners in to negative equity that would make selling homes impossible.

This bleak picture of the UK housing market of the future could become a reality as soon as 2013 if European MPs vote in favour of draft mortgage regulations that are aimed at pulling the UK market in line with the rest of the EU.

But British lenders say that buy to let should stay outside the directive because the lending is for business investment rather than for personal homes.

If buy to let is included in the new rules, lenders will have to underwrite mortgages on affordability rather than projected rental income.

For landlords this means they would have to show lenders they could afford to pay their buy to let mortgages from the rest of their income.

The Building Societies Association has slammed the move, with Paul Broadhead, head of mortgage policy, saying: “If the EU goes down this route lenders could be forced to change the way they underwrite buy-to-let mortgages. In the worst case, people wouldn’t have enough money to finance their buy-to-let mortgages and the sector could potentially stop overnight.

“Three quarters of these buy-to-let landlords are individuals, couples and families and if they cannot remortgage their properties they will have to sell, creating an influx of property on to the market and potentially reducing prices.”

The EU draft directive is set to be voted on by MEPs early next year.

Ed Mead, of the Association of Residential Letting Agents, said: “Potential EU legislation might drive many buy to let landlords away from what is a vital part of UK housing provision.

“This must be viewed with caution. Our government ought to be wary of taking a lead from the EU here and encourage informed investment into this sector with tax breaks, not lumping buy-to-let in with those residential purchasers who need all the protection they can get.

DO NOT LET THIS HAPPENsign this government petition and use the share buttons below to encourage others to sign it too.


Mark Alexander
Mark and his family have been investing in property since 1989, initially in the Norwich area but more recently across the length and breadth of England. Mark created Property118.com as a social network for landlords with a vision of becoming the UK’s largest online property investor directory.
Mark’s experiences and strategies as a landlord are shared here

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Comments

Ian Ringrose

12:24 PM, 21st November 2011
About 8 years ago

How much of the “buy to let” market is really people with more than 1 or 2 lets. We would have passed with affordability on our 3 mortgages on the basses of none rental income.

Also if current income includes profit from other rentals, but just excluded the projected rental income for the property being mortgaged, this will only affect people that are taking great risks at present.
So I don’t think we are looking at the end of “buy to let” just maybe at the end of highly leveraged , “overnight”, large landlords and everyone that makes money form the “get risk” training courses etc.

Mary Latham

13:32 PM, 21st November 2011
About 8 years ago

Every landlord should sign this http://epetitions.direct.gov.uk/petitions/22767 please.

Save the buy-to-let mortgage

Responsible department: Her Majesty's Treasury

To exclude loans to residential landlords (buy-to-let mortgages) from the EU draft directive on Credit Agreements. Thereby ensuring that lenders still have the opportunity to access affordability based on rental income not just a borrowers personal income.

I agree with Ian some landlords will be very vulnerable if this happens where those who have lower gearing will not be so concered. I have always worried that becoming a landlord has been seen as a get rich quick method since BtL mortages were introduced and perhaps this will make some people stop and think that building a safe portfoli takes a little longer but is still very worthwhile in the longer term

Mark Alexander

19:48 PM, 23rd November 2011
About 8 years ago

Hi Mary

Your above post has been trolled by an anti landlord group. I can't get it back unless several people hit the thumbs up on your hidden post. In the meantime I have added the link to the petition to the main article. Please share this article using the "Sharing is Caring" buttons.

Mary Latham

21:00 PM, 23rd November 2011
About 7 years ago

I expect the trolls manufacture the card board boxes that people will be forced to live in if landlords loose their ability to provide more homes

Mark Alexander

21:04 PM, 23rd November 2011
About 7 years ago

LOL - don't let Svetlana hear you say that. She is a Financial Accountant for Smurfitt Kappa! We have it covered both ways 😉

Mary Latham

21:07 PM, 23rd November 2011
About 7 years ago

Why am I not surprised. I could sell the parcel tape I suppose!

Mark Alexander

21:20 PM, 23rd November 2011
About 7 years ago

I know where the Trolls live.

They all have stupid names too and NEVER show their faces.

I think they see themselves as the BTL equivelent to the KKK.

They refer to this website as "the belly of the BTL beast"

Rolling on the floor in laughter

Here's the evidence ...... I've tracked them down

They come from a forum called House Price Crash. If you Google the title of this article you can easily find them.

Mary Latham

21:40 PM, 23rd November 2011
About 7 years ago

Ah and they are using their little paws to press the thumbs down button - cute

I am happy to post openly on "the belly of the buy to let beast" because I am proud of being a good landlord and I own my comments.

Perhaps you guys who hide and post on "the green eyes of the Alsoran Monster" website would come out of hiding and have a reasoned debate?

Mary Latham

21:44 PM, 23rd November 2011
About 7 years ago

The thing I like best about the thumbs down button is that when the post is hidden there is another little button that allows people to read what it hidden. Who can risist seeing what is hidden?

3:31 AM, 24th November 2011
About 7 years ago

So people want cheaper housing and that makes them trolls, does it? House prices are too high and are crippling the economy. A healthy economy is where one can afford to buy a house under reasonable circumstances. Owning a home is part of one's liberty. BTL is a parasite on society. I look forward to a massive property price crash, and all your renters will be buying. You surely don't think the future is rosy for housing with the steady collapse of economies , do you?

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