AMI welcomes buy-to-let proposals

The Association of Mortgage Intermediaries (AMI) has given its support to proposals to extend the scope of the Financial Services Authority's (FSA) regulation of buy-to-let mortgages.

Buy-to-let mortgages would be brought under the FSA's regulatory regime for the first time under the proposals, which the authority claimed would strengthen oversight of the industry and protect consumers making investment decisions on property.

AMI director Robert Sinclair said: "It is right that the proposals will exempt limited companies and focus on individuals who carry out buy-to-let transactions.

"Broadly, this appears to be codification of existing industry best practice and should not introduce significant additional costs."

However, Mr Sinclair said the government and regulators would need to ensure that any reform was implemented over a period which would allow the industry to adapt.

Announced last month, the FSA's proposals were met with concern by the National Landlords Association (NLA) which said the proposals will mean increases in the costs of borrowing for landlords.

The NLA said that although increased protection for smaller, less experienced landlords was welcome, "professional landlords who treat their lettings as a business do not require the same level of protection".

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