It’s been an uneasy period in the UK for Landlords and Letting & Estate Agents this year, while we await news on the PRS industry following the elections last month. As the HIP packs have been abolished, the UK has seen a raised increase of houses coming onto the market as owners initiate sales. The proposed CGT raise has also seen a number of BTL properties hit the market as landlords rush to beat the tax increase.
It also appears that the Banking sector are not immune to reform and are undergoing changes in house as banks review their policies.
- As the coalition government prepare plans for a £6bn cut in public spending, an £8bn tax, is expected to be levied on banks. The emergency budget on June 22nd is also expected to announce a vat increase.
- Lloyds Bank, which is Britain’s largest mortgage lender is doing it’s best to withdraw interest only mortgages and a levy of 0.2 of a per cent is being administered by some other banks on interest only mortgages. BTL lending dropped for the first quarter of 2010. The Council of Mortgage Lenders (CML), reported a 15 per cent fall. In 2007 there was a reported 3,662 different btl mortgages on the market, that figure now stands today at just a mere 300. Arrears in the btl market seem to be faring somewhat better with a 1.5 per cent drop at the end of this years first quarter, compared to the same quarter in 2009
- The Eurozone situation seems to be causing some worry for btl investors, who borrowed from private banks. Libor (the rate at which banks lend to each other) has risen in the past three months from 0.61 per cent to 0.7 per cent.
- Stephen Green, Chairman of HSBC announced that the bank’s remuneration committee will be reviewing their pay practices. The committee will assessing the bank’s pay and bonus policies.