Relief As UK Buy To Let Lending is Excluded From New EU Rules

13 June 2012 Categories: News

Relief As UK Buy To Let Lending is Excluded From New EU Rules

Buy to let investors in the UK can feel much more positive about the future today after it was announced that buy to let lending would not be governed by a new set of EU rules on lending. At present, the UK private rental sector is the only one in Europe that sees mortgage lenders take predicted rental income into account when deciding whether to approve a loan, but had the new rules included buy to let lending then the personal income of the borrower would have been used in the decision making process instead.

According to experts if members of the European Parliament had decided to include the UK’s rental market in the new rules it would have spelled disaster. The decision was made by MEPs following intense lobbying and campaigning by both the Council of Mortgage Lenders and the Residential Landlords Association.

Chairman of the RLA, Alan Ward, commented on the decision saying, “Today’s decision by MEPs represents a common sense solution to a measure that would have crippled the private rental market in the UK. With a chronic shortage of properties in the sector, the initial proposals would have exacerbated the problem still further, causing further difficulties and higher rents for those looking for accommodation.”