HomeLatest NewsBank of England powers extended to Buy to Let Market
Bank of England powers extended to Buy to Let Market
Posted on 11/01/2016 by Sulgrave Estates
The Chancellor is giving the Bank of England greater powers over controlling the buy to let mortgage market. Buy to let mortgage lending has increased by 40% since 2008 compared to just 2% for owner occupied mortgages. The Bank of England has warned that the buy to let market poses an increased threat to the stability of the housing market because rising property prices expose vulnerabilities that could magnify a housing crash. The Financial Policy Committee says landlords are more sensitive to boom and bust as they often buy when prices increase but sell during a downturn. The Executive Director of the Intermediary Mortgage Lenders Association, Peter Williams, has expressed his disappointment that the mortgage industry has not been consulted about the move to hand greater powers to the Bank of England saying “A stage of evidence led policy making has been removed and the consultation may be limited to what those powers will be when, rather than if, they are granted.”