The CML highlighted the difficulties lenders faced in dealing with the “multiplicity” of numerous local initiatives unleashed by the 2011 Localism Act and other, restrictive, local policies.
It said while in theory the principle of delegating responsibility sounded sensible, it could cause problems if policies were not applied consistently: “Many firms value being able to give customers realistic expectations that they will be treated to the same standard, wherever they live in the country.
“For localism to work effectively, it requires each of the local partners to a scheme to have a shared understanding of how it should be delivered, and for central government to monitor the consequences.”
Landlord licensing, types of developments, measures to bring empty homes back into use and the resources invested into mortgage rescue schemes were among those differing from authority to authority, according to the lenders’ body.
Restrictive clauses, such as that which restrict the sale of homes to locals, and initiatives encouraging house hunters to self-build could also make it more difficult for borrowers to obtain mortgages on their property, it suggested.
Last month, Mortgage Solutions revealed how landlords could find it harder to find buy-to-let mortgages due to the introduction of additional licensing by local authorities.
