Landlords told all buy-to-let mortgages should be FSA regulated

News Category: Industry News

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Professional landlords will benefit if all buy-to-let mortgages become regulated by the Financial Services Authority (FSA), according to a proposal from the British Property Federation (BPF).

Its report said that there must be a crackdown on reckless lending and an end to treating buy-to-let mortgages as business loans.

Ian Fletcher, BPF director of policy, said that many buy-to-let lenders were at the root of the economic crisis and there must be regulation to ensure such a property-fuelled meltdown does not reoccur.

A housing supply backlog of more than one million by the end of 2010 has been predicted by the Town and Country Planning Association.

But landlords may not be able to profit from the greater demand from tenants as the economic crisis has made it harder for professional landlords to expand their portfolios.

"Professional landlords have suffered as a result of banks refusing to lend," Mr Fletcher said.

"If landlords can't expand or invest in new homes, it hurts all areas of society."

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