Regulators concern over prices
Buy-to-let landlords face tighter borrowing
The Bank of England’s powerful finance policy committee said it is concerned about the rapid growth of the sector which may force borrowers to over-stretch themselves.
If landlords see their loan repayments starting to exceed their rental income, many would respond by selling their property – potentially accelerating a downturn in the property market.
Buy-to-let lending has grown by 40% since 2008 — 20 times faster than lending to owner-occupiers – fuelled by individuals switching out of other poor-returning investments and concerns over pensions.