RLA unhappy with proposed credit controls

News Category: Legal

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The Residential Landlords Association (RLA) has voiced its displeasure at proposals outlined by the Financial Services Authority (FSA) to change the way credit is controlled to buy-to-let lenders.

RLA policy director Richard Jones stated that the regulations changes described by Lord Turner, chairman of the FSA, deal with the symptoms of the credit problems facing the industry, rather than the issue itself.

"We face an expanding population and smaller households. Unless we respond by making sure that we provide more homes, the real problems will not be addressed," he said.

Mr Jones added that the real challenge is ensuring there are enough homes for people who rely on the private rented sector for accommodation.

He explained that credit needs to be opened up by lenders as residential landlords rely on loans to purchase new properties.

Lee Grandin, director at broker Landlord Mortgages, recently stated that it could be as long as two years until landlords are able to access competitive mortgages.

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