The Week in Property: More Regulation for BTL Investors?
BoE Eyes BTL Market Regulation
The ever booming buy to let market is coming under increasing scrutiny by The Bank of England with more regulations becoming a heightened possibility. Last summer, the Financial Policy Committee led by Bank of England governor, Mark Carney, introduced regulations to stop the housing market from over-heating, and noises emanating from the bank suggest there’s more to come. Their focus being the financial risks presented by an ever escalating number of BTL investors. Worryingly, the Bank’s governor, Mark Carney is reported in The Telegraph as holding talks with chancellor George Osbourne about gaining more powers to police the BTL market. See The Telegraph’s report below for the why’s and what’s of any prospective changes.
But Don’t Let Possible Regulation Bother you….
Sabre rattling from the Bank of England hasn’t deterred our friends at Landlordzone, however, who this week posted five reasons why BTL is still a good investment. For those of a short attention span or time to read, they focus on the service offered by the private rental sector to the economy at large, landlord confidence, safety of property investing compared to other investments and the buoyancy of the BTL mortgage market. The arithmetically minded of you may have spotted that’s only four reasons. That’s because one reason wasn’t a reason as such, more a statement that it’s still growing, which, in a way, is a reason that it must still be good, right? For the meat on the reason bones, check out:-
Eviction Loopholes for Tenants?
There were dark mutterings this week among landlords about pesky government guidelines after the Deregulation Act 2015 saw a whole raft of changes coming into force about when landlords can and cannot serve Section 21 notices on an assured shorthold tenancy. Quite properly, there has been rumblings about how much education is taking place by the government of landlords so they properly understand all new regulations. You can catch up with the debate here
3 Bedroom Buy to Lets the Way to Go?
For the first time, growth in rental value has been plotted alongside number of bedrooms in rental properties, and three bedroom BTLs seem to be the way forward. We say ‘seem’ as a get out for any potential third party data inaccuracies. According to this new data, rents for 3 bedroom properties are growing at 4.6% a year compared to a national average of 3.3%. More details and the areas where they are really smashing it in rent growth can be found here:-
Live the Dream in London – Under the Stairs
As we recline in our roomy Manchester rentals that cost a pauper’s wage per month, there’s one topic we love reading about: overpriced London rentals. And so, it is with some joy that we relay the week’s most popular story on social media. It centres on a London flatshare that offered a bed under the stairs for 500 pounds a month. It was, we should point out, in the high demand and fashionable area of Clapham, where average rentals go for 700 plus a month. A bargain, then, surely? Not according to Alex Lomax. Ms Lomax had come all the way from Nottingham to view the ‘room’, and was less than impressed, going of the pictures she posted on her Twitter account. Unless you are currently reading this under a stairs in Battersea, you too can enjoy the horrors of the London letting market here.