Buy-to-let mortgages 'need regulating'

All buy-to-let mortgages should be regulated, according to the British Property Foundation (BPF).

The organisation has called for the Financial Services Authority (FSA) to take control of the issue and introduce new regulations.

At the moment, the BPF thinks that buy-to-let mortgages are thought of in the same manner as business loans and are treated differently to other mortgages.

Ian Fletcher, BPF director of policy, said that irresponsible lending in the past has led to the need for new rules in the present.

He commented: "Many lenders simply threw money at buy-to-let borrowers during the boom without sufficient checks on who they were lending to or what they were lending for.

"If landlords can't expand or invest in new homes, it hurts all areas of society. It's vital that we learn from our mistakes and don't constrain future housing investment."

The BPF has also suggested that repossessed tenants should be given at least two months to find a new place to live.

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