The Treasury says it will review some of the proposed changes to buy-to-let regulation to ensure that it is proportionate.

In a report, ‘Mortgage Regulation: Summary of Responses’, the Treasury says it will consider how best to protect consumers. The report follows a consultation on mortgage regulation including BTL mortgages. “The Government remains convinced that it is right to introduce regulation of buy-to-let, to better protect consumers from the harmful practices seen in recent years… 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.”

The current proposals were initially due to be formed by the FSA but the Treasury is now in consultation as to what parts of the market need regulating.