The Financial Services Authority (FSA) will need to crack down in the buy-to-let market next year, according to Landlord Mortgages.

Lee Grandin, managing director of Landlord Mortgages, said more advisers needed to include risk warnings when selling buy-to-let products to protect themselves from litigation. He said: “It is fair to say that novice buy-to-let investors are most at risk from inappropriate investment return claims made by mortgage brokers and investment advisers.

“I am surprised that the FSA has not given guidance to buy-to-let mortgage brokers and mortgage lenders on what it expects them to disclose in respect to likely investment returns.”

The buy-to-let market is beginning to come under scrutiny as pressure in financial markets continues.