The council is currently consulting on a number of proposals for improving the standard of rented accommodation, including the introduction of additional and selective licensing for landlords.
National Landlords Association chief executive Richard Lambert said: “The NLA is aware of the situation whereby some lenders choose not to lend in designated licensed areas, for example in Newham where borough-wide licensing is currently in place.
“Lenders may deem areas of designated licensing as high-risk ventures considering the current appetite for buy-to-let investment is strong throughout the UK.
“The NLA has consistently raised its concerns about the negative impact of licensing on investment, especially at a time when housing is much needed.
“Furthermore, if Reading Council goes ahead with the introduction of additional licensing relating to the provision of Houses of Multiple Occupancy, landlords could find themselves breaching their mortgage terms by simply complying with the licensing requirements”.
Reading’s consultation, which ends on 31 August 2012, suggests additional licensing could be used to regulate smaller houses in multiple occupation in specified areas and selective licensing could regulate other private rented accommodation such as bedsits.
Any introduction of licensing would only take place after an extensive consultation, it stressed.
Meanwhile, in Worcester, two city councillors are proposing to introduce licensing for all private rented homes in the city in order to improve accommodation standards.
