Back off UK Buy To Let

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29th November 2011

Back off UK Buy To Let

An MEP has waded into the row over the EU regulation of buy-to-let mortgages.

Nikki Sinclaire has lambasted the proposals.

The MEP for the West Midlands said that the proposals might bring the UK buy-to-let mortgage sector into line with continental practice, but ignore the real issue.

She said: “The UK is the only European country that has a thriving buy-to-let market. In other countries, property investment is carried out by companies or trusts rather than individuals.

“If implemented, the EU regulation could inflict huge damage to the private rental sector.”   Around 1.4m landlords with buy-to-let loans are set to be affected by the proposed changes, which would mean that rental income cannot be taken into account when mortgage approvals are being considered. As a result, some landlords with insufficient other income or with low deposits might find they no longer qualify for a remortgage if the new rules are implemented in around two years’ time.

Sinclaire said: “It is outrageous that the EU should try to dictate to lenders and borrowers the basis on which loans should be offered.

“This unwarranted assault on the buy-to-let market will inevitably result in less affordable rental housing. It will also put the lives of 1.5m British investors and their tenants into turmoil.”

She said that a number of MEPs have claimed that their constituents do not care about the new proposals and may use this excuse to support the proposed changes.

She urged landlords and tenants to bring pressure on the MEPs. She added: “People might think this would affect just investors, but in truth this will damage the whole housing market including ordinary home owners.”

The MEP, who is a member of UKIP although not in the official group, said that if changes to the UK buy-to-let market need to be made, they should be made by “our democratically elected politicians in Westminster, not by faceless and unelected bureaucrats in Brussels”.