The Bank of England has launched a consultation on new measures to control lending to the buy-to-let sector.
Proposals include a standardised set of affordability tests, interest rate rise stress tests and additional structures for risk management, all of which could reduce the lending amounts.
The bank said the proposals seek to ensure buy-to-let lending is conducted in a prudent manner, to prevent a loosening in underwriting standards, and to curtail inappropriate lending and the potential for excessive credit losses.
Buy-to-let regulatory changes and proposals
8 July 2015 Chancellor announces tax relief on mortgage interest payments will be cut from April 2017. Landlords who pay basic rate tax will see no change, but those on a higher incomes could lose thousands of pounds a year.
25 November 2015 Additional 3% stamp duty land tax to be levied on all second homes, effective 1 April 2016. Stamp duty on a property costing £250,000 will rise from £2,500 to £10,000.
15 March 2016 Budget confirms that large-scale investors will not be exempt from stamp duty changes.
29 March 2016 Bank of England proposes increased regulation of buy-to-let lenders.
29 June 2016 Bank of England consultation on lenders closes.
