CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Too much focus on buy-to-let market could backfire, says LBG's Rickards
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines


Commercial Credit News


Too much focus on buy-to-let market could backfire, says LBG's Rickards PDF Print E-mail
Thursday, 30 June 2016
The growing pressure being brought to bear on the buy-to-let market could backfire if it adds to the housing gap, said Phil Rickards of Lloyds Banking Group at today’s FSE Cardiff panel debate.

Talking about the variety of changes that will impact on the sector, lenders and landlords, Rickards said there was a danger of going too far. “We need to be careful how much pressure is being placed on the housing market,” he said. “This could impact a lot on the private rental sector, and we’ve already seen the decline in social housing. We could be leaving people with nowhere to live”

Rickards also added that he believed the buy-to-let market was “not one that’s out of control”.

Ian Andrew of Nationwide Building Society said the PRA consultation on underwriting standards in the buy-to-let sector – due to be published shortly – would have a major impact on buy-to-let lending. “We’ve seen a tightening of criteria and a tightening of stress rates which is already resulting in a drop in case numbers,” he said. “After the consultation period every lender that hasn’t already moved, will have to move. This will create buy-to-let mortgage prisoners – some of them will find it difficult to remortgage.”

John Coffield of Paradigm Mortgage Services said he was confused by the Government’s continued focus on the private rental sector. “It’s odd because we see the PRS as part of the solution, not part of the problem,” he said. “I think lenders need to send out clear messages to brokers about helping them through this maze.”

In terms of the growing interest in limited company buy-to-let lending as more borrowers seek to house their portfolios, and new purchases, within structured vehicles, the two mainstream lender representatives were asked about their plans in this area.

“It’s something we’re still looking at,” said Andrew. “It’s very capital intensive for us and we have nothing planned at the moment.”

Rickards said: “We’re definitely looking at it but we want to do it in the right way. To be honest we’ve been distracted by the PRA consultation and we have to prioritise our work streams.”
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards


Tuesday 3 October - Guoman Tower Hotel, Central London

Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.

To book your place to attend, please contact Alison Lucas.


CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road

Registered in England No: 05483197