In its latest News and Views publication the CML says: “The UK believes it is inappropriate to regulate buy-to-let under rules designed to protect consumers, and we understand that amendments have now been laid that would exempt this type of lending from regulation under the directive.”
The European parliament’s internal markets and consumer protection committee produced a report on proposals for a directive on credit agreements on residential property.
The report contained arguments on product diversity, which the CML supported, that implies that regulation needed to reflect not only differences between national markets, but between the different types of products that are targeted at by different groups of consumers.
The report said: “The consumer’s ability to take account of the (specifics) of his situation by means of individual contractor arrangements with the creditor, where appropriate with the aid of an impartial adviser, should not be restricted by excessive regulation at European level, particularly since the cross-border impact is limited.
"With a view to the stability of financial markets, there is no need to regulate more stringently than the consumer credit directive does, because measures that have already been adopted – for example, those on bank supervision, capital requirements and securitisation – are also effective and are more appropriate instruments for this purpose."
