Financial Policy Committee powers of direction in the buy-to-let market
Last updated: 11 Mar 2016
- Consulting body:
- HM Treasury
- Period of consultation:
- Runs from 17 December 2015 to 11 March 2016
- CML action:
- Response submitted
HM Treasury have published a consultation on the operation of the UK BTL market in relation to the potential risks the BTL market may have with regard to financial stability and the possible tools and powers that the FPC may be granted to deal with these risks.
Our response notes that although all lending activity carries with it inherent risks, CML does not recognise that BTL is in aggregate a substantially more risky asset class than prime residential.
We also confirm our on-going commitment to work with the Bank of England to build a sound evidence-base around BTL business models and lender/landlord behaviours – essential for timely and proportionate macroprudential intervention; and highlight that these proposals cannot be seen in isolation.