CML attempts to quell rental uncertainty

News Category: Industry News

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The Council of Mortgage Lenders (CML) has sought to quell uncertainty concerning achievable rents in new-build city centre residential lettings.

Its newly announced valuation guidelines and standards are intended to reduce the risk to both lenders and borrowers from buy-to-let mortgages in the new-build market.

According to the CML, a lack of available funding has had a negative impact on investor interest in the new-build residential lettings market.

However, Jonathan Moore, head of marketing at Mortgages for Business, claims that the oversupply of new-build properties has fuelled the problem.

He said: "There is currently an oversupply of new-build apartments, particularly in city centres, leading to concerns over property valuation and achievable rents.

"It seems unlikely that buy-to-let lenders will offer new-build mortgages in short term until there an upward trend in sector activity."

Meanwhile, Titlesolv has warned that solicitors may face increased claims against their professional indemnity cover if repossessions continue.

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