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Imla warns on BTL regulation threat
Buy-to-let could become less attractive if regulation becomes onerous, according to Peter Williams from Intermediary Mortgage Lenders Association.
His comments came in response to a Law Commission report into the private rented sector.
Martin Partington, special consultant for the Law Commission, said too much privately- rented property is in a poor condition and poorly managed and the credit crunch means that an increasing number of people are deciding to rent so the private rented sector needs to “take its place effectively in the housing market”.
The report, Housing: Encouraging Responsible Letting, follows wide consultation with both landlords and tenants.
Mr Williams, executive director of Imla, said having a competent and capable private rented sector is a good thing, but his concerns would be the rules put in place could deter rather than encourage investment.
He said: “Regulation deters people from entering the buy-to-let market so it becomes less competitive. It is likely to reduce demand for buy-to-let landlords so it will reduce business for my members, at the same time if you can create a framework that gives some sort of confidence that could increase demand for renting. It is about trying to trade off those two things.”
The report will be looked along side the government-commissioned Rugg Review.
