Speaking at today’s Financial Services Expo London, Silvestrin said the decision to cut the tax relief higher-rate taxpayers could claim down to a basic rate level over the next four years might however have a “dampening” impact.
He said: “Activity [in the buy-to-let market] will not be as high as it would have been if this measure had not been introduced. But we don’t think it will have a major impact.”
Silvestrin said he believed further regulation of the sector was however looking likely.
He said that the financial regulators could act further in the buy-to-let space if they believe that lending levels were getting too high and the sector was securing too great a proportion of total lending.
He added: “If they do anything, it will be around increasing the rental cover ratio required and increasing stress test levels on buy-to-loans,” he said. “Buy-to-let is likely to become more regulated.”
