Lenders 'should set buy-to-let guidelines'

Posted: 02 Feb 2011 13:44:40 GMT

A lack of advice for new buy-to-let landlords could result in repossessions and lost money for lenders.

A lack of guidance is bad for clients as well as landlords, an industry expert has claimed.

David Lawrenson, private rented sector expert at LettingFocus.com, suggested it is time lenders offered better advice to people entering the buy-to-let market.

He noted financial institutions should be aware letting is a lot more complicated than it used to be and that failure to provide information can have negative repercussions.

"Most lenders still provide no guides at all - which is bad for landlords and ultimately can be bad for their clients, the tenants," Mr Lawrenson said, adding the lender can suffer if resulting repossessions lead to lost money.

He also mentioned much of the advice that does exist is questionable, due to an absence of regulation.

According to Paragon, 46 per cent of intermediaries are planning to expand buy-to-let business in 2011, while 17 per cent predicted an increase in the same field of ten per cent or more.
 

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