Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to Mark Farmer under Ray Boulger’s post
Bank of England is paving the way for restrictions to buy to let market
If they try to control the BTL market by imposing higher interest levels for the rental income calculation, what will be the ultimate consequence? Higher rents in the PRS, in London in particular, but also in other areas of the Country where rental demand is high.
In their rush to control every man and his dog, the BoE/FCA/Government, will push more and more people back to ‘Social Housing’, pricing them out of the PRS and ultimately denying them the opportunity of ever being able to purchase their own home.
Talk about ‘self defeating’. The average aspirational Brit will suffer again and the super rich Foreigners, buying up every property they can get their sticky mitts on, will not be affected at all.
I can envisage the scene in the House of Commons in a few years time. The Housing Minister stands at the dispatch box and laments the collapse of the PRS, complaining that there is insufficient Social housing or Council houses to meet the increased demand. (I think we’re there already aren’t we? Imagine how bad it might be?!) A public inquiry will be called for and the blame will eventually be laid at the feet those who have worked diligently within Financial Services – namely the Advisers and Intermediaries. Hamstrung and Shackled by regulation from the EU and Canary Wharf, we will be hit with yet another increase in fees as a result. What a mess. What a fiasco.
Will the last adviser please turn out the light.
