CML calls for property investment clubs to be regulated

The CML says while there is very little interaction between PICs and buy-to-let lenders regulation of PICs would provide better protection to consumers. PICs typically operate by encouraging potential investors to pay large sums as subscriptions for access to new build or off plan properties, usually flats, at ‘discount prices’. Marketing often concentrates on the ability to re-sell property and make a short-term profit, rather than on the rental income potential of a property. The CML says between 5% and 10% of lending is secured on new build properties and even less than this on fla...