Costs of buy-to-let regulation must not be passed on to landords
19 Oct 2009
The National Landlords Association (NLA), the UK’s leading representative body for private-residential landlords, has expressed concern that the regulation of buy-to-let will mean increases in the costs of borrowing for landlords.
Although increased protection for smaller, less experienced landlords may be welcome, professional landlords who treat their lettings as a business do not require the same level of protection.
In proposals outlined today by the Financial Services Authority (FSA), buy-to-let would be brought within the FSA’s regulatory regime thereby, they claim, strengthening oversight arrangements and potentially ‘protecting consumers making investment decisions on property.’
David Salusbury, Chairman, NLA, commenting on the Discussion Paper, said:
“As with all proposals, the devil will be in the detail but the FSA may come across problems of definition. When does a so-called ‘amateur landlord’ become a professional landlord? How large does a property portfolio need to become? The answers to these questions may well indicate exactly which investors are in need of further protection and which are capable of protecting their own interests quite adequately.
“While the paper presents a logical approach to the regulation of buy-to-let, some of the rhetoric about reckless lending is playing to the gallery. The focus should be about getting lenders lending once more. The lack of mortgage finance is hampering the housing recovery and, therefore, reducing the available housing stock on offer to those who choose to rent.
“The majority of landlords are financially sound and approach their lettings business in a professional and business-like way. We must ensure this fact is at the heart of all discussions relating to regulation which will affect landlords.”
To download the FSA Mortgage Market Review Discussion Paper go to: http://tinyurl.com/yj3kq9a
For journalists who require more information or case studies, please contact:
Steven Hilton
Media Relations Manager, NLA
Email: steven.hilton@landlords.org.uk
Tel: 020 7840 8906
Mob: 07508 031 084
Notes to Editors:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With over 18,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities towards their tenants.
