Trade bodies unite in face of regulation

GUY GARRARD
GUY GARRARD HEAD OF BUSINESS DEVELOPMENT TIUTA

It seems some kind of harmony has broken out among various trade bodies. I’m not suggesting that they have been at each other’s throats, but each have their own agenda and own members to look after.

What common cause has emerged to bring these forces of the industry together? Of course, it can only be one thing – regulation.

We’ve seen the Council of Mortgage Lenders, the Association of Mortgage Intermediaries, the Building Societies Association and Intermediary Mortgage Lenders Association raise their voices in some sort of unison against the regulator’s potential banning of interest-only.

Now it has been reported that the National Landlords Association and the CML have teamed up to improve the education of landlords.

NLA chairman David Salusbury says the two trade bodies are “working together to persuade the Treasury that its line on not regulating the buy-to-let mortgage market is the correct one and we are taking steps – in the form of landlord education – to ensure we self-regulate as a market”.

It’s a commendable move as education, alongside product innovation and competition, is a key element in being a successful landlord. In terms of potential buy-to-let regulation, if it ever comes to fruition, it will open up a can of worms in terms of how many properties will be covered.

We will also need rules on how regulation will distinguish between amateur and professional landlords and raise the question of should all commercial transactions be regulated.