The National Association of Commercial Finance Brokers (NACFB) has welcomed the move.
Chief executive, Adam Tyler, commented: “I am glad that they have held off implementing regulation and are looking for further input before any plans are 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.”
The report produced following the consultation period, Mortgage Regulation: Summary of Responses, says that: “The Government will examine how to ensure the impact of regulation on the buy-to-let market is proportionate, particularly for individual professional landlords. It will also consider how best to protect consumers from the range of possible causes of detriment that may result from buy-to-let including, if appropriate, the consequences of poor investment decisions as well as unaffordable borrowing.”
Adam Tyler continued: “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.”