Fri 08 Jun 2012
The European directive on credit agreements relating to residential property (CARRP) has had its final amendments voted through. The UK government will be allowed to exempt buy-to-let mortgages from the directive, lifting the threat that all buy-to-let lending would have to be assessed without taking rental income into account.
It had been proposed that buy-to-let lenders would have to assess mortgage applications in exactly the same way as residential mortgages. This would have a highly damaging effect on the UK’s buy-to-let market which has played a highly useful part in shoring up the housing market.
None of the changes are quite a done deal, as the legislation still has some way to go, but pundits took encouragement from yesterday’s decisions. The UK government will actively have to enforce the buy-to-let exemption, and can only do so if they are convinced there is no detriment to consumers. The Government will now come under renewed pressure to make the exemption.
Further information can be found here: http://www.fsa.gov.uk/about/what/international/mortgages
Living Property, 09/06/12, www.livingproperty.co
"Living Property have fully managed my three rental properties in Bungay for several years now. I have always found Kim and Paula to be efficient, professional, proactive and friendly. Dealing with them has become like dealing with friends. The agencyâ€™s monthly management fee is very reasonable. I am often abroad, and I particularly value the fact that when tenants move in or out, the staff deal with all the utility companies, meter readings, Council Tax, etc. In the early days, when I managed the properties myself, this was nothing but hassle, worry and aggravation, but not any more. Paula makes regular inspections of the properties and reports back to me. She is not greeted by the tenants with suspicion or misgiving but is welcomed in, sometimes with tea and pastries! I have no hesitation in recommending Living Property both to landlords and tenants. Dr C. Goodden (landlord)"