Mortgage regulation puts first-time buyers at a disadvantage

17th April 2014

A study by the UK Housing Review has found that first-time buyers are being disadvantaged in favour of landlords, due to more stringent financial regulation aimed at protecting taxpayers from risky mortgage lending.

"The imbalance in the mortgage vehicles available to first-time buyers and prospective landlords gives private landlords a significant competitive advantage in the market," said Steve Wilcox of the University of York, the report's author. The annual review, compiled by the Chartered Institute of Housing, explains that since the downturn, the Financial Conduct Authority has cracked down on interest-only lending to home buyers but that it does not regulate buy-to-let lending. Ray Boulger, of John Charcol, said that restrictions on interest-only residential mortgages had "gone too far".

Source:   Financial Times (15/04/14)