Two interviews given by a deputy governor of the Bank of England appear to suggest that there will soon be additional restrictions on mortgage lending for buy to let purchases.
Jon Cunliffe told the BBC that “buy to let has grown faster than any other part of the housing market," adding that: "When you find one sector of the property market growing fast...then I think you have to ask questions about are there risks here, and you have to monitor those risks and if necessary you have to take action to curtail those risks."
And in an interview with the Financial Times, Cunliffe reiterated his view that the BoE's next move on interest rates would be an increase. "I think we see signs of pay growth coming back in the economy and we're seeing signs of productivity coming back, but... I'm data-dependent," Cunliffe told the newspaper.
Earlier this week the BoE’s Financial Stability Report stated that the authorities would not look favourably on any relaxation of buy to let lending criteria being offered by mortgage companies, such as reducing the size of deposits or income requirements.
"The committee remains alert to the rapid growth of the UK buy-to-let market, and potential developments in underwriting standards as the sector could pose a risk to broader financial stability," the Bank of England said in its report.
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