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.”View more on these topicsNews
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Neptune launches Japan Institutional Fund
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FSCS to pay back 2,700 clients of collapsed DFM Beaufort
The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back. London-based Beaufort Securities has been investigated by both the FCA and US authorities. An indictment from the US Department of Justice alleges that […]
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