Calls for buy-to-let market regulation

News Category: Legal

This article was brought to you by Rentman the premium rent management software

There should be some regulation in the buy-to-let property investment market, according to UK mortgage brokers.

At the present time the Financial Services Authority's (FSA) mandate does not extend to the buy-to-let sector, which is classified as personal business activity.

However, some brokers believe the FSA should play a more active role.

Lee Grandin of broker Landlord Mortgages told Reuters: "I am surprised that the FSA has not given guidance to buy-to-let mortgage brokers and mortgage lenders on what it expects them to disclose in respect to likely investment returns."

He added that many investors were novices "swayed by dreams of becoming property millionaires", and faced dangers in the current property climate where house price growth is slowing.

However, the Council of Mortgage Lenders said that there are not a large number of buy-to-let investors who need this kind of intervention.

Meanwhile, European mortgage firms are set to be constrained by new consumer protection rules drafted by the EU.

How to stay legally compliant with letting agency software