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Over half of estate agents want buy-to-let regulation

Over half of estate agents think buy-to-let should be regulated by the Financial Services Authority, reports movewithus.

In a survey of over 200 estate agents, 51% say it should be regulated by the FSA and then the Consumer Protection and Markets Authority.

Robin King, director at movewithus, says: “If the advice given to buy-to-let investors had been regulated by a body, such as the FSA, we might have seen better investment advice and far fewer casualties when things went wrong in this sector.  

“Buy-to-let is still a vulnerable market because of the type of properties being bought and so it is interesting to see that a significant proportion of estate agents themselves would like to see the sector regulated.”

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  • Jon 13th August 2010 at 3:37 pm

    The article appears to be saying that BTL investment should be regulated – I do not see any reference to BTL mortgages. I agree I think BTL investment advice should be regulated – why should it be different to advice for any other form of investment.

  • Grey haired broker 13th August 2010 at 3:34 pm

    Paul is absolutely right.
    The client only approaches the broker for funding after he has been sold the “investment” by the estate agent.

  • Wetherbys Estate Agents 13th August 2010 at 2:56 pm

    I am responding to your article as an estate agent who has 7 branches currently. A mortgage adviser has to pass exams to trade i.e. cemap. Most have even done FPC’s. What does an estate agent have to pass. Oh yes…. pass their driving test. What qualifies an estate agent to say Buy to Lets should be regulated. Most agents only care about the car they drive, the sunglasses they wear and what suit to wear on the day. In my opinion, you might as well have asked a 10 year old as this research was as useful as giving a beef burger to a vegetarian. Also in response to Mr Skinners comments, you don’t need to be regulated to sell a property. Why would an estate agent need to know the Mortgage Law, Policy, Practise and Markets or how Ni is calculated, or Mortgage Contact of Business (MCOB) rules and the legislation etc…when this is taken care off by the broker/ lender who has to give the advice. It is simply a case of finding a buyer and a seller and putting the two together. I agree there should be a minimum standard which THERE already is. However, you all saw what happened when you took away the MCCB and replaced it with the FSA. So before we get any estate agent bashing comments please bear this in mind. On the other hand, I also agree with Mr Skinner, estate agents should not get involved in areas they know nothing about and just enjoy the minimum regulation there is. Thank you. Wetherbys

  • cliff 13th August 2010 at 1:42 pm

    Paul I totally agree! Funny how people that are un-regulated can even suggest this! Considering estate agents are making more money out of the transaction than any other party involved in the house buying process. Lets face it its not that difficult for the money!!

  • Paul Skinner - PKS Property & Finance Solutions 13th August 2010 at 12:58 pm

    Interesting that they seem to be blaming mortgage advisers for the poor investment advice. It was estate agents that sold the properties to these landlords? When will Estate Agents be regulated properly???