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Selective licensing would deter new landlords

If Selective Licensing was brought into force nationally 74% of landlords think it would deter new landlords from entering the buy-to-let market according to a survey by Paragon Mortgages. 60% of landlords said they would not invest in buy-to-let property where Selective Licensing was in force, with 60% of professional landlords and 61% of private investor landlords also favouring this sentiment whilst just 20% believe that Selective Licensing will not impact on their rental business. John Heron, Director of Paragon Mortgages, said: “It is often suggested that the buy-to-let market is not regulated enough. In reality the market is heavily regulated and landlords have to comply with more than 100 regulations. “It is clearly important that landlords who operate in the buy-to-let market are regulated and run responsible businesses. However, what our survey shows is that landlords are becoming increasingly concerned about Selective Licensing and other areas of regulation. “If Selective Licensing is employed in the appropriate way it will be beneficial in areas that need it, but there is a danger of putting off new landlords-which the market needs in order to grow - if a broad brush approach is taken.”

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