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Yousefi denies need for BTL regulation

The buy-to-let market does not require formal regulation, says Alliance & Leicester head of intermediary mortgages Merhdad Yousefi.

He claims the current system where BTL mortgages are policed under the Consumer Credit Act represents sufficient consumer protection.

The Treasury has yet to reveal any plans to regulate BTL although many industry commentators believe it is only a matter of time before it does.

Yousefi says: “It would be a mistake if BTL is regulated. Residential investment is not a long way from commercial property and, when something becomes a commercial transaction, the same need for consumer protection does not apply. We think the mortgage market is overregulated and we do not need any more regulation. Most BTL borrowers have had some experience of mortgages so are not in the same boat as other borrowers.”

John Charcol senior technical director Ray Boulger has previously said that other sectors of the market, such as second-charge loans, are in more urgent need of regulation.

Society of Mortgage Professionals chief executive Richard Fox says: “People using property for their own use need protection. If it is the only house they own, they need some protection. A number of buy to lets are not commercial transactions, such as when school teachers and army officers rent out their property when they are working and live in it during their breaks.”

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