The report will examine the rise in the number of investors that have been buoyed by the strength of the BTL market, with particular attention to be given to student properties.
Commissioned by Chief Secretary to the Treasury, Yvette Cooper, the review follows a recent paper by the National Landlords Association which highlighted poor practices among landlords.
The paper also supports recent Citizens Advice Bureau (CAB) findings which indicated that 20 per cent of tenants were dissatisfied with the quality of repairs by their landlord, but were wary of complaining.
A spokesperson for CAB: said; “Tenants have now got more rights to get repairs done – but many are afraid to use them in case they get kicked out.”
Hugh Nichols, proprietor at Badbury Berkeley Financial Services, blasted the idea of regulation of the BTL market. He said: “Lots of lenders do not lend to first-time investors and the market regulates itself to an extent.
“The BTL business is separate to residential as it is being run as a business and should operate under different rules. It is very much ‘buyer beware’ and investors are usually more aware of the market as they are using it as an investment.”
However, Nichols admitted that sale and rent back scheme advertising should be regulated as there was greater chance of confusion and product complexities.
