Call to regulate all property investment activity
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Property investment firm Assetz wants the regulator’s remit to extend beyond buy-to-let to cover all types of property investment.
Assetz says that the proposed plans by the Financial Services Authority to regulate buy-to-let are a step in the right direction but argues that property investment as a whole should also fall under the FSA’s watch.
The company says this would prevent the widespread mis-selling of recent years and would ensure risks are properly disclosed to investors.
Assetz says it would also curb rogue practices by some agents and developers who misquote investment capital growth forecasts and yields to amateur buy-to-let investors.
It believes regulation of the buy-to-let mortgage market will help to deter the activities of property clubs, mortgage brokers and solicitors and control what is currently a fragmented market.
Stuart Law, chief executive of Assetz, says: “Far from impeding the recovery of the market, taking away the speculative, higher risk transactions will improve the risk profile of the sector from a lender’s perspective.
“This will aid the recovery of the housing market as a whole and buy-to-let LTVs and interest rates will become more competitive as lenders once again increasingly view buy–to-let as a lower risk sector than standard home loans.”
Last month Assetz launched the Property Focus Group to educate and boost the skills and understanding of brokers and IFAs advising on property investment.
Readers' comments (2)
Tony Joannou | 30 Nov 2009 3:06 pm
I saw on the news to day calls to regulate hairdressers. Why stop there. lets regulate everything from when we wake up till we go to bed!
When is this country going to wake up from its regulation nightmare. If people are grown up, then its up to them how they act and behave and invest too.
We should have a simple legal framework to follow and if the line is crossed then its a matter for the law. If not, its down to them.
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amir kharkowa | 30 Nov 2009 11:11 pm
Get real Mr Law (Assetz) we have a legla system but people get away with murder- if people wantto mak investmetns they need to be adult enough to take the good with the bad of the investment return- a few more risk warnings will not do anything to protect them
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