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fru-gal

Natwest And Rbs Don't Lend For Btl Where Councils Have Introduced Licensing Schemes

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Ok, this article is from last year but it would seem that some banks do not lend for BTL where there is a licensing scheme in place. Wonder if this will have any effect since so many Councils are now consulting on bringing in landlord licensing?

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2244088/council-licensing-schemes-threaten-btl-market

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Why? Do they only want bad landlords?

I don`t think they want any landlords now. BTL is the new whipping boy for the political class, an easy target for tax etc. meaning that many small (and large :lol: ) landlords won`t be able/willing to keep up the payments?

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Why? Do they only want bad landlords?

Maybe the banks have done the sums and decided that if landlords are forced to pay the costs of 1) being on the register and 2) maintaining their properties properly, they will have less money - perhaps not even enough to pay the mortgage.

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I don`t think they want any landlords now. BTL is the new whipping boy for the political class, an easy target for tax etc. meaning that many small (and large :lol: ) landlords won`t be able/willing to keep up the payments?

Carney/Osborne have given enough dog-whistles on this for people to get out.

I expect new tax regulations to recover some of the HPI gains as they cash out.

I also expect local councils are going to start seeing them as a new cash-cow, increased regulation, reduced housing benefit payments to occupants.

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Because if they have done the risk assessments and work out that if they have a portfolio of 100 houses in those areas, and 2 landlords break the rules and lose their properties to fines and actions from the councils, crystallising the forced sales plus attendant costs probably wipe out the profit for the bank on the other 98.

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If licensing and registering are seen as the same thing the whole of Wales will be of limits

The Welsh government's White Paper - which sets out its intentions for the bill - included a proposal that would see private landlords having to sign a mandatory register before they could take on tenants

http://www.bbc.co.uk/news/uk-wales-politics-24979842

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The Labour Shadow Housing liar Minister also said they are going to introduce a register if they win.

Done deal in Wales http://www.assemblywales.org/bus-home/bus-business-fourth-assembly-laid-docs/pri-ld9558-e.pdf?langoption=3&ttl=PRI-LD9558%20-%20Housing%20%28Wales%29%20Bill

I don`t know if the baks will view this the same as licensing ?

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The Labour Shadow Housing liar Minister also said they are going to introduce a register if they win.

To be fair, they did already, it was already legislated for, Shapps's first act as housing minister was to can its introduction on grounds of cutting unnecessary red tape.

Edited by montesquieu

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The banks know that local councils will do this in steps, once they realise there's a new way to fund their pensions.

- introduce perfectly reasonable register for private landlords, with little or no application fee.

- a little later, introduce higher fees, with some excuse like 'value add for tenants'

- a little later, whack it up again, along the lines of property banding, or energy efficiency

- ad nausea until the property is practically worthless for the landlord

How many MPs and councillors are landlords?

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The reason is clearly that if the potential landlord buys the house and is not awarded a licence then he cannot rent it out.

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The Labour Shadow Housing liar Minister also said they are going to introduce a register if they win.

Thought they already did (i.e one was all set to go) but the Tories blocked it when they got in?

Edit: see a few posts back. Grant Shapps canned it.

Edited by byron78

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The reason is clearly that if the potential landlord buys the house and is not awarded a licence then he cannot rent it out.

Makes sense. Maybe they allow remortgages, although a license revocation would realize the same risk, perhaps once you have been awarded a license it is hard to lose unless the place becomes uninhabitable etc.

Still though, a bit more pressure on BTL is no bad thing, and if it clears out a few jokers then so much the better. I presume every other local authority will follow suit in due course.

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Makes sense. Maybe they allow remortgages, although a license revocation would realize the same risk, perhaps once you have been awarded a license it is hard to lose unless the place becomes uninhabitable etc.

Still though, a bit more pressure on BTL is no bad thing, and if it clears out a few jokers then so much the better. I presume every other local authority will follow suit in due course.

Banks would have to change their policy then!

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