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Six in ten landlords would stay out of areas of selective licensing

Six in ten landlords would stay out of areas of selective licensing

Six in ten landlords will not buy properties in areas where there are selective licensing schemes in force.

Only 20% believe that selective licensing will not impact on their rental business. However, the survey by specialist lender Paragon, was carried out before yesterday's report by the CLG select committee which calls for greater freedom to be given to local councils to introduce selective licensing in their boroughs.

John Heron, director of mortgages at Paragon, said: “It is often suggested that the buy-to-let market is not regulated enough. In reality the market is heavily regulated.

“It is clearly important that landlords who operate in the buy-to-let market are regulated and run responsible businesses. However, what our survey shows is that landlords are becoming increasingly concerned about selective licensing and other areas of regulation.”

The London borough of Newham remains the only place in England and Wales with a blanket selective licensing scheme covering all private rental properties, but other local authorities are gearing up to follow suit and yesterday’s CLG committee report could lead to manyy more – and perhaps universal – selective licensing schemes.