Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
The Chancellor George Osborne has said he will give as yet undisclosed powers to the Financial Policy Committee (FPC) to intervene in the Buy to Let market as soon as possible.
The FPC are the Bank of England committee who vote every month on decisions regarding the Bank Base Rate and levels of Quantitative easing. They were given powers previously to cap Loan to Income and Loan to Value levels in the residential owner occupier market.
Osborne said “The governor of the Bank and the FPC have asked for additional powers over buy-to-let mortgages and we have granted those powers.” He was then asked if this was a new announcement and he said “I’d better wait until we actually make the announcement, but this will be as soon as possible.”
Last year the Bank of England requested powers to cap the size of landlords’ mortgages as a multiple of their rental income, similar to the Loan to Income maximums on residential mortgages. However, Osborne at the time thought more consideration was needed before any changes were implemented.
The additional powers have been requested by the Bank of England in order for it to take any necessary steps to protect the stability of the housing market.
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