The Treasury has announced that it is extending the consultation period for buy to let regulation until the end of April.
Since plans were announced to regulate buy-to-let lending, lenders and property professionals have been vocal in their response, expressing concern that it would lumber the private rental sector with unnecessary burdens.
The report produced following the consultation period: “Mortgage Regulation: Summary of Responses”; says: “The Government has decided to explore changes to the form of regulation proposed. Further consultation on such changes will follow after the conclusion of the current Treasury consultation on investment in the private rented sector, which closes on 28 April.”
The National Association of Commercial Finance Brokers (NACFB) has welcomed the decision, with chief executive Adam Tyler saying: “I am glad that they have held off implementing regulation and are looking for further input before any plans and drawn up. During our representation we outlined the difficulties inherent in a ‘one size fits all’ regulatory package based on the residential market and explained that definitions would need to be thought out carefully so that regulation wouldn’t strangle an already fragile market.
“We are also pleased that the Treasury seems to have acknowledged that the buy-to-let market is more complex – and that many of the problems experienced have been down to problems with the investments vehicle – the property purchased – rather than the mortgage used to buy it with.”
Adam Tyler added: “Obviously, there is still work to do – but at least in these initial stages the Government has listened to our representations and we will continue to work to make sure the broker’s voice is heard.”
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