In an effort to slow down the fast growing sector in the lending market of buy to let borrowers, the Bank of England has granted permission to the Financial Policy Committee (FPC) to regulate the loan to value (LTV) offered by lenders on buy to let mortgages. They will also control the interest coverage ratios. This effort will help stabilize the lending market and ward off any financial problems, but it should also increase the number of properties available in the housing market that will be attractive to first time buyers.

First time buyers have been struggling to climb on the property ladder since before the financial crisis. Afterwards, it has become even harder. In England, the rate of home ownership has fallen to 64%. Over a decade ago, in 2003, homeownership was at a rate of 71%. For young families and first time buyers, in the age range of 25 to 34, the rate has declined from 59% to only 37%.

Chancellor Philip Hammond remarked, “: "It is crucial that Britain's independent regulators have the tools they need to keep our financial system as safe as possible. Expanding the number of tools at the Financial Policy Committee’s disposal will ensure that the buy to let sector can continue to make an important contribution to our economy, while allowing the regulator to address any potential risks to financial stability.”

There are approximately 1.8 million buy to let mortgages in the UK which is close to 17% of the total value of all home loans. Total buy to let debt, according to the Council of Mortgage Lenders, is at £227 billion, which is a drastic increase from the £9 billion reported in buy to let mortgages in 2000.

Last year there was a record high since 2007 of gross advances for buy to let mortgages and remortgage at a level of £37.9 billion.

The new limits of the FPC will begin in early 2017.