Many Industry heads are warning that Labour's proposal to clampdown on bad landlords in the private rented sector could have repercussions on buy-to-let lending.

Labour  proposed to introduce a national register for landlords in one of its policy reviews last year.

Landlord licencing is becoming more common in Councils and landlords not signing up are being threatened with tough fines.

The Royal Bank of Scotland does not lend to private landlords involved with licencing schemes as they have underlying concerns on the impact on house prices with property re-sale values.

An RBS spokeswoman says: “As a responsible lender, we would not consider releasing funds on a property where an amateur landlord may find it difficult to comply with regulation and subsequently to let or sell.”

An association for landlords spokesman says: “We could see a return to the lending policies of a few decades ago when returns were not as secure as they are now. That could have a massive knock-on effect on the ability of landlords to access finance and provide homes.”

A buy-to-let consultancy's owner David Lawrenson says: “Labour’s plans would reduce buy-to-let lending. A lot of councils are introducing licencing schemes without thinking through how it would actually work.”

A buy to let business managing director Ying Tan says: “It is frustrating that the buy-to-let sector is now back on its feet following the credit crunch, and now politicians want to intervene with red tape.”

Labour has failed to issue a comment.

 

 

For reference PIMS Article published Oct 13 "All Landlords and Agents MUST register" read more

 

 

 

The Housing Act 2004 introduced the licensing of Houses in Multiple Occupation. Local Authorities are required to license larger, higher risk HMOs, which initially will comprise those of three stories and above occupied by at least five persons who constitute more than one household.

 

 

Councils requiring Planning Permission

Selective Licencing -Low demand areas

Renting Rooms vs Houses

Overview change in Planning Laws

Councils have additional powers .examples

 

Every Landlord irrespective of property MUST have a licence, similar scheme apply in parts of Manchester and cities such as Liverpool and Oxford have announce similar intentions

 

see (Newham) Compulsary licencing purchase of private Landlord Properties