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Rise in buy-to-let lending highlights inconsistencies in regulation

The record share of mortgage lending going to the non-regulated sector could be a sign that lenders are looking to get around rules designed to bolster financial stability by turning to the buy-to-let sector. While there are good reasons for buy-to-let lending to be excluded from policies designed to protect consumers, it is less clear why it should be a special case for macroprudential regulation.

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