FSA may regulate buy-to-let mortgages
July 14, 2009 by Brendan
News
As those undertaking CeMAP training will learn, the Financial Services Authority (FSA) regulates the bulk of mortgages in the UK but does not cover buy-to-let mortgages – yet.
The FSA has now threatened to extend its regulatory duties to include buy-to-let, which would mean new regulations that landlords must meet.
There are still a few problems that landlords might have to face, despite the recent court case that may allow some landlords to reclaim commissions paid to high street estate agents on buy-to-let renewals.
In an article from CityWire, it is reported that the taxman is considering tripling the tax raised by the 700,000 landlords in Britain. According to the article, the HMRC may force letting agents to inform them of the name and address of any landlord so they can ensure that those receiving rental income or making capital gains as they sell a property can be forced to pay their tax instead of trying to avoid it. If those who have avoided paying tax were not to come forward within an amnesty period then they could be prosecuted and forced to pay any tax that should have been owed for p to six years ago.
If the FSA does gain rights to regulate the buy-to-let market then this could mean better repair on properties and better regulation to avoid any unlawful evictions – and certainly a change in the CeMAP syllabus.
Written by
Brendan
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