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Landlords in favour of buy-to-let regulation

by: Mortgage Solutions
  • 08/03/2010
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Landlords in favour of buy-to-let regulation
The majority of landlords support regulation of buy-to-let mortgages and advice, according to a survey conducted by LSL Property Services.

However, the Treasury and FSA must resist the temptation to impose a “one size fits all” regulation because not all landlords are the same.

Its latest survey showed that nearly 60% of landlords favour proposals to regulate buy-to-let mortgage lending, believing it will provide additional protection for landlords raising finance.

David Brown, commercial director of LSL Property Services, said: “It may be surprising that many landlords advocate further regulation – but this does reflect a general desire for additional investor protection, and if it leads to a greater professionalisation of the sector, it should be applauded.”

Landlords are also in favour of regulating advice provided by intermediaries and introducers in respect of buy-to-let loans, with 59% saying it will help root out unscrupulous brokers.

The survey also showed that 55% of landlords with seven or more years’ experience are opposed to the regulation of mortgage products, saying they do not need the additional administrative burden.

David Brown said: “The majority of experienced property investors do not necessarily need nor want the added protection or burden of increased regulation. Most are able to secure their own finance and are skilful at managing brokers and lenders to obtain the products they need.

“Long established portfolio landlords are less likely to benefit from tighter regulation. Indeed, they see a real risk that disproportionate regulation may make force more lenders and brokers from the sector, exacerbating the current shortage of buy-to-let mortgage finance,” he added.

LSL Properties owns the UK’s largest lettings agent network, including national chains Your Move and Reeds Rains.

 

 

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