Bradford & Bingley has welcomed the government move to crack down on unscrupulous large buy to let property investment companies.
The newly named Department for Productivity, Energy and Industry (DPEI) went to court yesterday to close down six companies which sell flats in high-rise apartment blocks to residential investors in get-rich-quick schemes.
The DPEI said it was "very sceptical" about the claims made by the companies, which often persuaded investors to part with huge sums of money with little or no guidance about the consequences - a sentiment echoed by Bradford & Bingley.
"These companies the DPEI is now targeting have promised people the earth, often charging ridiculous prices for poor or no advice on what is a substantial investment," said Mark Stevens, managing director of Strategy at Bradford & Bingley.
"Buy to let is predominantly seen by our customers as a long-term investment and not a get-rich-quick scheme. We firmly believe that the sector remains an excellent option for investors as part of their overall investment and savings plans."
Recent data, from Mortgage Express and the National Association of Landlords, have suggested that it could be an ideal time to invest in a buy to let property.Click here to find out more about buy to let mortgages.
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