Some 54% of mortgage brokers believe buy-to-let should be regulated by the Financial Services Authority (FSA), according to new research from Exact Mortgage Experts.

The research showed that two out of every five brokers said at least 90% of their buy-to-let clients were amateur landlords. Around 63% of brokers surveyed said more than 75% of their buy-to-let clients were amateur investors. Exact polled 549 mortgage intermediaries.

Alan Cleary, managing director of Exact, said, “Buy-to-let should always have been regulated. The ready availability of mortgage finance and credit up until two years ago opened the door for a lot of amateur investors. The lack of regulation meant it was too easy for amateurs without a commercial head on their shoulders to jump on the bandwagon. It was a mistake to assume that because buy to let was viewed as a commercial endeavour, it could be left unregulated. The number of amateurs landlords in the private rented sector with sizeable portfolios now well under water is proof of the fact.”

Buy-to-let arrears rates are above the market average according to official statistics. Exact has assessed the credit quality of more than £4bn of specialist loans. Its assessments suggest a large proportion of buy to let arrears are caused by relatively few individuals who invested unwisely at the height of the market.