The British Property Federation has called for all buy-to-let mortgages and property investment clubs to be FSA regulated. In a new report entitled ‘Responsible Regulation’ the BPF calls for tenants living in properties repossessed by banks to be given a minimum of two months to secure alternative accommodation.

The report, backed by Savills, comes as the FSA has announced plans to regulate sale and rent-back deals. People renting homes bought on a buy-to-let mortgage generally escape immediate eviction as the lender would have expected to have tenants in the property. Where properties bought on a normal owner-occupier mortgage have been rented out without permission, tenants have less right to remain.

Ian Fletcher (pictured), BPF Director of Policy, said, “Many lenders simply threw money at buy-to-let borrowers during the boom without sufficient checks on who they were lending to or what they were lending for. Consumers have suffered as their buy-tolet dream turned sour and many buy-to-let lenders were at the root of our economic problems.”

CLICK HERE TO DOWNLOAD THE REPORT

 www.bpf.org.uk