The Telegraph has reported that the Chancellors mortgage rescue deal with banks will exclude buy-to-let properties.
The article can be read here (subscription may necessary) stating that the The formal Mortgage Charter agreed with banks was published on the Government website on Friday. The small print of the deal shows that the commitments made by lenders – including more flexibility over repayments – do not apply to buy-to-let mortgages, with Rachel Reeves, the shadow chancellor warned that excluding buy-to-let mortgages from the rescue deal risked a “potential snowball problem … building up” in the private rented sector, amid soaring interest costs.
On Saturday night, she wrote to the Chancellor, warning that the exemption could leave some two million properties out of the deal.
“This could have severe consequences, because not only will landlords potentially hand higher costs directly onto renters, increasing the risk of evictions, it may also result in a rush to sell buy-to-let properties with a knock-on impact on an already disrupted housing market,” she said.
‘Government appears to be anti-landlord’
Marco Longhi, the Conservative MP for Dudley North, who has been a landlord for nearly 20 years, said: “What this does is unfortunately provide yet another signal that the Government appears to be anti-landlord.
“When tenants have difficulty paying rent that results in landlords struggling to pay the mortgage. There is a chain reaction here that I would have thought the Chancellor and Treasury would be aware of.
“I don’t think it would have involved a huge effort or huge burden on lenders to have included buy-to-let mortgages within that charter.”
He added: “The closer you push landlords to that point of no return, there will be no properties available to rent. Landlords will sell.”