‘CARRP Could Be Another Bitter Blow For Landlords’ Claims Belvoir Sheffield

Jan. 16, 2012 - PRLog -- in a bid to regulate buy-to-let mortgages which hitherto have not been regulated in the UK, Belvoir Sheffield, the leading letting agent in Sheffield is warning that this could have an impact on the residential landlord.

The move has concerned many industry critics, who fear that it could result in the inability of landlords to source new or even renew buy-to-let mortgages, as they would no longer be able to include rental income in their calculations, making the process entirely dependent on personal income.

Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said: “If income is to be excluded from consideration when underwriting a buy-to-let mortgage, then this could severely affect the availability of new borrowing. There is also a huge worry that those with existing buy-to-let loans may be unable to refinance, which is of course another bitter blow for the residential landlord.”
Earlier this week, The Building Societies Association (BSA) revealed its fears that the move may ‘severely restrict mortgage availability and force landlords to sell, reducing the stock of private rented accommodation and causing house prices to fall.’

Some in favour of the move suggest that the new plans will in fact bring Britain into line with European practice, and force lenders to assess buy-to-let in the same way as mortgage applications by owner occupiers on their prime residence, which would be on the borrower’s personal earnings.

Rick, whose letting agency on Campo Lane in Sheffield, specialises in providing flats to let in Sheffield added, “We are currently in a supply versus demand situation, with far more people seeking rented accommodation that actual properties available.  If these plans go ahead, we could see a further property shortage which could in the long term pose further problems for the Government and those unable to get one foot on the proverbial property ladder.”
Belvoir Lettings Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.

For more information on successfully letting out your property to students, please visit www.belvoirlettings.com/sheffield.