Garrard told intermediaries at the Mortgage Business Expo that regulation in the buy-to-let market would “be good if it was well thought out and integrated effectively.”
He stressed the importance of the FSA implementing a clear, simple and effective set of rules, adding that “additional costs would be justified if regulation is done in a good way” to help boost the market, and not deflate it.
He also criticised the FSA’s proposals to impose regulation based on the number of properties that a landlord has.
He said: “This could mean a landlord with more than three properties would escape regulation and those with fewer would be regulated – this is not fair and just.”
Garrard recognised the “risk” factor associated with the buy-to-let market, as amateur investors entered the market in the boom years.
However, he told intermediaries that he believed the market would be regulated, this time next year.
