EXCLUSIVE: NLA and CML join forces on buy-to-let

Nia Williams

October 8, 2010

The move is in a bid to show the authorities that the market is capable of self-regulating.

The CML invited the landlord trade body to work with it on educating investors in the buy-to-let market so that landlords fully understand the risk they take on.

David Salusbury, NLA chairman, said: “We’re very pleased to have been invited by the CML to work together on how we can educate would-be landlords and improve their understanding of the buy-to-let market.

“We are also working together to persuade the Treasury that its line on not regulating the buy-to-let mortgage market is the correct one and we are taking steps – in the form of landlord education – to ensure we self-regulate as a market.”

John Heron, managing director of buy-to-let lender Paragon, said: “This continues the good work started by the CML and the Association of Residential Letting Agents some 14 years ago when we recognised that the industry has a responsibility that individuals considering buy-to-let for the first time understand the commercial nature of the transaction they are engaging in, and where to get the information they need, to learn how to be a better landlord.”

Salusbury added: “The NLA wants to raise standards in the sector and ensure there remains a fair and stable balance between landlord and tenant.”

Bernard Clarke of the CML said: “We have been involved in a range of initiatives to educate would-be landlords considering buy-to-let, and continue to work with the NLA. We support their stand on regulation because, in our view, the most likely source of potential detriment is the investment decision, not the funding of it with a buy-to-let mortgage.”

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