Mortgage lenders have expressed their concerns about changes in the buy-to-let market in Scotland.
If passed, as is likely, the Private Tenancies Bill will put an end to Assured Shorthold Tenancies, introduce the ability to introduce rent controls, and remove the “no fault” ground for reclaiming a property.
A spokesman from the Council of Mortgage Lenders said that well intended proposals could have “unintended consequences”.
He said that landlords could be discouraged from investing in the sector, leading to a shortage of properties and higher rents.
The CML is calling for the introduction of a system similar to the receiver of rent in England and Wales.
In cases where the tenant is paying the rent but the landlord isn’t paying the mortgage, the tenant can make the payments directly to the lender.
Scottish minister for housing Margaret Burgess said: “Mortgage lenders have nothing to fear from our proposals as there are sufficient safeguards in the Bill to protect their interests.”
A very good, much fuller piece is on the trade publication Mortgage Introducer
Is Margaret Burgess really so utterly naive as to believe that mortgage lenders will give a toss about Scotland. We’re a minnow in a financial ocean and they simply won’t take the risk of lending if this legislation goes ahead as is proposed. Time to elect switched on politicians who understand the issues!
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