Assetz has called for the FSA to implement buy-to-let regulation to prevent the widespread mis-selling that has taken place in recent years and ensure risks are properly disclosed to investors.
Stuart Law, chief executive of Assetz, said buy-to-let mortgage regulation could stop penniless speculators entering the buy-to-let investment market and should improve the transparency of individual transactions.
He added: “Taking away the speculative, higher risk transactions will improve the risk profile of the sector from a lender perspective. This will aid the recovery of the housing market as a whole. Buy-to-let LTVs and interest rates will become more competitive as lenders once again view more that buy-to-let as a lower risk sector than standard home loans.”