Regulation of buy to let market

As many readers will know, in a sign of the times and perhaps long overdue, the self certification mortgage market will be regulated in the near future. It is unfortunate that such tight regulation is needed but the huge excesses and fraud of the last decade have made this inevitable.

With lenders adopting stringent criteria in any event, is it specifically necessary for the buy to let market to be regulated, bearing in mind that some landlords own multiple properties and have been or remain highly leveraged ? What form should such regulation take if it does happen ?

In a recent survey by Move with Us, estate agents, not exactly known for being in favour of any regulation which might fetter a sale in any way, were asked whether they consider that the buy to let market ought to be regulated. Interestingly, over 50% were in favour of regulation, which indicates that even estate agents are now adopting a far more measured approach to the property market and see clearly that an ongoing boom and bust cycle, especially when the bust part is so severe, is no longer sustainable.

We are unaware of any plans to specifically regulate buy to let or as to what form any regulation might take. If you have any views on this issue, please do let us know.