Treasury 'should not regulate' buy-to-let landlords

News Category: Industry News

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

Buy-to-let landlords are not being helped to decide whether or not to invest in property, it has been stated.

The Council of Mortgage Lenders (CML) said it agreed with proposals to regulate second-charge mortgages, but disagreed with plans to regulate buy-to-let mortgages more closely.

Under the plans, it could become more difficult for a landlord to get a mortgage to buy a property and then rent it out.

It said: "Fundamentally, the CML still believes that buy-to-let loans are essentially commercial transactions with an investment dimension, and should not be subject to retail mortgage regulation."

The CML added that while the government was promoting investment in property, it should not be damaging buy-to-let lending by introducing inappropriate regulation.

Figures recently released by the CML showed the value of new buy-to-let lending in 2009 was down from £27.2 billion in 2008 to £8.5 billion.

The National Landlords Association said the figures proved more regulation of mortgages to buy-to-let landlords was unnecessary.

Find out more about letting agent software