Alliance & Leicester says brokers want to see the buy-to-let market regulated by the Financial Services Authority (FSA).
The lender's latest survey of intermediaries says seven out of 10 (70%) brokers want to see the market regulated alongside mainstream mortgages
But brokers blame regulation for driving down profits with 41% saying the future will be less profitable for them because of the costs associated with compliance and the long-term impact of M Day.
Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester has expressed surprise at the support for regulation of the buy-to-let sector suggesting the brokers he has spoken to already feel the mortgage market is sufficiently regulated.
"The aim of mortgage regulation is to provide consumer protection. Buy-to-let, by its nature, is more of a business transaction and doesn't have the same regulatory issues as mainstream mortgages,” Yousefi adds.Yousefi says the call from brokers for buy-to-let to be regulated is probably due to the rise in people wanting to cash in on the growth of the sector with the rise of 'amateur landlords' creating a greater need for advice on a buy-to-let product to see if it is the appropriate investment vehicle for them.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
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