Calls to buy to let industry regulation
The treasury is under renewed pressure to regulate the buy-to-let sector.
Some 88% of lenders responding to a buy-to-let survey by a law firm.
Two-thirds of respondents expect buy-to-let repossessions to rise this year and more than half expect more litigation against brokers who fail to advise clients of the risks involved in the sector.
The survey follows a report last week from housing charity Shelter, which is also calling on the government to expand the Financial Services Authority’s remit to cover buy-to-let.
The report warns of the sector’s pitfalls, such as the risks of eviction faced by tenants whose landlords fall into arrears.
David Salusbury, chairman of the National Landlords Association, says: “I would be concerned that regulation of the sector could further complicate matters for landlords. This could act as a disincentive for them to invest in rental property.”
A Treasury spokesman says the government has no plans to regulate buy-to-let.
He adds: “Buy-to-let mortgages are not secured against people’s homes as opposed to first charge residential mortgages, so there is less need for consumer protection.”
Leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment