Buy-to-let panel blasts Labour’s rental pledge

Published by Mortgage Introducer on Tuesday, 03 March 2015 by Ryan Bembridge
The panel at Paragon’s Great Buy-to-let Debate included David Whittaker, managing director of Mortgages for Business, and Paragon’s managing director John Heron.

Labour has pledged to ‘make rent increases more predictable’ by changing the law so three year tenancies are the norm, while the party also wants to place an ‘upper ceiling on any rent increase’ every year.

But Whittaker said: “It’s totally the wrong solution. It ignores the fact there is a direct linkage between the capital value of the property and the rental value.

“It interferes with certain …

Tags: rent, rental value, three year tenancies, wrong solution

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