Regulation seems to be the call for the buy to let industry at the moment but a recent statement from the CML indicates that they feel that credit flow is the answer to our problems not the increase of regulation.
This statement has been prompted by figures showing that new buy to let lending had increased for the second consecutive quarter in the last three months of 2009. There were 25,800 new loans advanced, up from 23,700 in the previous quarter.
The head of the NLA or national landlords association seems to think that other recent figures showing the the decline in both repossessions and mortgage arrears showed that the BTL sector was far more robust than it was being given credit for. He says that this indicates that all the talk of regulation is a bit over the top and urges the government to have another think before they put wholesale changes in place.
He adds: “Rather than wasting effort on further legislation they should be encouraging lenders to get credit flowing again.”
I am rather in two minds about this. Some regulation may not be a bad think and may in fact take some pressure away from landlord’s by giving them a solid set of guidelines to follow. On the other hand over regulation can be a nightmare. And clearly i agree one hundred percent with Mr Gordon’s statement regarding lenders getting cash flowing into the market again.
