Brokers keen on buy-to-let regulation

The majority of mortgage brokers would like the Financial Services Authority (FSA) to regulate the buy-to-let property market, according to a new study.

Exact Mortgage Experts surveyed 549 mortgage intermediaries and found that 54 per cent would prefer regulation.

Additionally, most of the brokers polled said that the majority of their buy-to-let clients were amateurs - further strengthening the need for regulation, according to Exact managing director Alan Cleary.

He said: "The ready availability of mortgage finance and credit up until two years ago opened the door for a lot of amateur investors.

"The lack of regulation meant it was too easy for amateurs without a commercial head on their shoulders to jump on the bandwagon."

Mr Cleary added that many of these amateur landlords have found themselves in arrears, with a relatively small group responsible for a large proportion of total arrears in the buy-to-let sector.

He warned that it is not just the landlords who have found themselves in financial difficulty because of a lack of regulation - tenants also suffer if the property they rent is repossessed.

Get a buy to let insurance quote today from Simple Landlords Insurance.