Exact Mortgage Experts claim that it was revealed this week that fifty four percent of brokers believe the FSA should step in to regulate the buy to let market.
It is also being said that figures show a large number of mortgage brokers say that two thirds of their clients, who are buy to let landlords, are amateurs in the property market. It seems many are equating this amateur status with a need for more serious regulation in this sector. It is sensible to assume that those with less experience may require a more hands-on approach and extra guidance.
Alan Cleary, managing director of Exact, has this to say on the issue:
“The ready availability of mortgage finance and credit up until two years ago opened the door for a lot of amateur investors…The lack of regulation meant it was too easy for amateurs without a commercial head on their shoulders to jump on the bandwagon…It was a mistake to assume that because buy to let was viewed as a commercial endeavour, it could be left unregulated. The number of amateurs landlords in the private rented sector with sizeable portfolios now well under water is proof of the fact.”
It seems to me that FSA regulation, so long as it is not too intrusive, may be a good idea for this sector of the market. It should provide guidance and protection for everyone concerned including the landlords themselves.
