View more on these topics

Silly lenders are still in the sector

Irresponsible lending is still a part of the buy-to-let sector, according to National Association of Commercial Finance Brokers chief executive Keith Heron.

He believes that some lenders on the fringes of the market are still indulging in poor practices but that concern is one of the few issues that the experts have in an otherwise healthy market.

Other concerns are the diminishing housing stock and the threat that the Revenue could raid the market to boost its bank balance with an increase in tax on investment returns.

Heron said: “We have seen some evidence of silly lending from the peripheral lending community. It is a concern in terms of what is being lent and the valuations of properties.”

On housing stock, commercial lender Interbay’s head of operations Colin Bell said: “One challenge for the market is on housing stock. As more and more properties are bought, it is having more of an effect on the residential market and it prices out people who are borrowing.”

On tax, Alexander Hall chief operating officer Andy Pratt said: “BTL is an obvious sector for the Treasury to have a look at to make money.”

Recommended

Scot Wids axes 200 jobs

Scottish Widows is to axe around 200 jobs following a review of its customer services division.The job cuts are being made because ScotWids wants to consolidate the back office processing at its Chatham operation which currently employs 450 permanent staff. All ScotWids customer-facing services will now operate out of Edinburgh and 200 permanent staff will […]

ABI wants Turner-type probe for LTC

Long-term care should be the next subject of a Turner-style inquiry to tackle future welfare problems, says the ABI. Speaking at the FSA asset management conference, ABI director general Stephen Haddrill said the issue needed to be tackled with the same amount of effort that the Government has put into pensions. Earlier this year, a […]

Government £4m backing for Hip test

The Government has pledged £4m of funding for the Hip dry run in Bath, Newcastle, Southampton, Northampton, Huddersfield and Cambridge in November

Sour taste of sweetener

Scottish Equitable’s veteran pension guru Stewart Ritchie is alarmed that IFAs might find themselves carrying the can for complaints arising from employees who get sweeteners to leave defined-benefit pension schemes early.What’s more, Ritchie has warned the FSA and The Pensions Regulator about the situation where companies want people out of DB schemes to reduce liabilities […]

Neptune launches Japan Institutional Fund

By Chris Taylor, Investment Director, Head of Research Neptune is excited to announce the launch of the Japan Institutional Fund on 22 June, having disclosed to the market in March its intention to offer the product. The Fund will be managed by the highly-regarded Chris Taylor, Head of Research and manager of the long-running Japan Opportunities Fund. It will invest in the same underlying stocks as the Japan […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment