The market should prepare for full regulation of the buy-to-let market, according to industry experts.
Speaking at the Financial Services Expo last week about the Government’s shock move to regulate “accidental landlords” to comply with the EU mortgage credit directive, commentators suggested full regulation is on the horizon.
Precise Mortgages managing director Alan Cleary says: “I would regulate the crap out of buy-to-let. I’ve got the same view I had in 2004 – that’s not so much about lenders or brokers misbehaving but for consumer protection. The buy-to-let market [already] acts like a regulated market; all the lenders treat it as regulated so the market’s sort of regulated already, but for me, it’s about [ensuring] consumer protection.”
Mortgages for Business managing director David Whittaker said: “It’s inevitably going to happen at some point. I just hope that we all behave ourselves sufficiently well not to give the regulator the reason or the excuse to hasten the day of regulation.”