Monday 19 March 2018

Honohan's right to hit landlords

The call by Central Bank Governor Patrick Honohan for banks to make deals with thousands of families struggling to pay mortgages is to be applauded.

Making a distinction between investment properties in mortgage arrears and family homes in arrears makes absolute sense.

An aggressive move on investors to speed up the repossession of buy-to-let properties, where repayments have fallen behind, is the way forward.

In fact the failure of banks to take a hard line in this area before now is difficult to understand. They have been extraordinarily reluctant to take action against this group of loan defaulters.

Patrick Honohan is right. Banks have to bite the bullet and investors have to take the hit. That is the only way we will begin to regulate the industry and return to a more realistic property market.

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