Industry responds to buy to let announcements

26 November 2009

Written by Jeni Browne

Members of the financial industry have responded to the Treasury's latest announcement that aspects of the buy to let market will come under greater scrutiny of the Financial Services Authority (FSA).

While the decision to further regulate individual buy to let investors has been welcomed by the Association of Mortgage Intermediaries (AMI), the Building Society Association (BSA) has warned that there will be difficulties in implementing the policy.

The focus of the new regulation will be felt by smaller landlords such as those who rent out homes privately, as opposed to larger limited companies.

Director of the AMI Robert Sinclair said: "Broadly, this appears to be codification of existing industry best practice and should not introduce significant additional costs."

Paul Broadhead, head of mortgage policy at the BSA, indicated that the FSA will face a "difficult challenge" when it has to differentiate between mortgages for different types of investor.

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