The research showed that 2 out of every 5 brokers said at least 90% of their BTL clients were amateur landlords; 63% of brokers surveyed said more than 75% of their BTL clients were amateur investors. Exact polled 549 mortgage intermediaries.
Alan Cleary, managing director of Exact mortgage experts, said, “Buy-to-let should always have been regulated. 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. It was a mistake to assume that because buy-to-let was viewed as a commercial endeavour, it could be left unregulated. The number of amateurs landlords in the private rented sector with sizeable portfolios now well under water is proof of the fact.”