Landlords fearing regulations in 2010
According to Paragon Mortgages, 58% of landlords said they were
worried about the level of regulation required in relation to the
running of their property businesses during the year.
With almost 50 Acts of Parliament ring-fencing the private
rented sector, and 70 sets of regulations governing the total
sector, the government's recent announcement that a national
mandatory registration scheme for landlords could become a
possibility has done little to alleviate fears.
"It is not surprising that regulation tops the list of
landlords' concerns for the year. They already have to comply with
a myriad of regulations, which seem to be regularly added to or
amended by the Government," said Paragon Mortgages' Managing
Director, John Heron.
In addition, HM Treasury (HMT) is currently consulting on
whether the Financial Services Authority's (FSA) remit should be
extended to regulate the buy-to-let sector. This is likely to
tighten buy-to-let product availability and increase the cost of
mortgages, which will have knock-on impacts for both residential
property investors and tenants and "must be avoided", according to
Mr Heron.
"If HM Treasury legislates to give the FSA the power to regulate
the buy-to-let market, then buy-to-let mortgage product
availability may decline and it could become more expensive to
borrow. Any extra costs are likely to be passed on to the ultimate
end user - the tenant - and could price the private rented sector
out of the reach of some of the more vulnerable households."
Several new regulations have been introduced in recent years,
including Energy Performance Certificates, tenancy deposit
protection schemes and Houses in Multiple Occupation Licensing.
And, with other landlord concerns including retaining tenants
(32%), finding tenants (31%), tenant disputes (24%), and meeting
mortgage payments (12%), 2010 could prove a pivotal year in the
letting business.
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