Landlord’s In Favour Of New Regulation

This story should not shock anyone with lots of experience with loaning to fund buy to let.

According to a report released this week by LSL Property Services the majority of buy to let landlords are in favour of the stronger regulation of mortgages and advice. Most of the landlords surveyed expressed the belief and the fervent hope that the regulation changes will offer landlords additional protection in what can be a fairly cut throat market.

60% are in favour for the reason of protection and and 59% say they believe it will help to rid the industry of unscrupulous introducers and intermediaries. David Brown, Commercial Director of LSL Property Services plc says

“It may be surprising that many landlords advocate further regulation – but this does reflect a general desire for additional investor protection, and if it leads to a greater professionalisation of the sector, it should be applauded.”

There are very few among us who would disagree with that statement or with the warning he issues about one size fits all solutions.

“Increased regulation would potentially help less experienced landlords, but it needs to be simple and proportionate. The FSA and the Treasury should avoid using a sledge-hammer to crack a nut. Landlords have different levels of experience, and different requirements.

“With a one size fits all approach to regulation, any benefit for inexperienced investors could potentially be outweighed by the damage to the sector if it ended up making it less attractive for larger scale landlords to invest.”

Very sensible words.