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News release

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:
Tel: 020 7840 8906
Mob: 07508 031 084

Notes to Editors:
Representing landlords from all over the UK, the National Landlords Association (NLA) is the leading organisation for private-residential landlords. It campaigns for the legitimate interests of landlords by seeking to influence decision-makers at all levels of government and by making landlords’ collective voice heard in the media. The NLA helps landlords make a success of their lettings business by providing a wide range of information, advice and services. It seeks to raise standards in the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities.