Experts Call For Property Investment Regulations

Property investment firm Assetz are calling for extended investment regulations beyond that of just the buy-to-let market.

Currently set to be monitored by the Financial Services Authority, Assetz believe the FSA’s power to regulate should include property investment as a whole.

If placed under this leash, this will ensure that all information is properly disclosed to property investors and will put a stop to rogue practices against amateur buy-to-let investors which are falsely leading them into buying weaker investments.

As we are writing this, many agents/developers are purposefully misquoting a properties capital growth forecast/yields to ensure a sale, and as a result are causing many inexperienced property investors to make bad investment choices.

Similarly, Assetz believe by removing the ‘high risk speculation’ which is currently surrounding the property market, this will help to speed up the property recovery as properties will receive better risk profiles by lenders.

And should their opinion improve this will enhance the availability of buy-to-let LTVs; will boost the quality of interest rates and more importantly will make the property market a more appealing place to invest.

For the moment, the FSA will only be in control of the buy-to-let market. However, should more property firms speak up on this topic i.e. creating greater regulations for the property market; this could soon result in protection for all types of property investment.

Original Article