For some time, it has been government policy to privilege the interests of private landlords over other homeowners. This process began in the mid-1990s when banks introduced buy-to-let mortgages, which assessed buyers’ creditworthiness on the rental yield from the property, rather than their existing income. Easy finance gave landlords an advantage over first-time buyers.
Banks were not directed to do this. They found out that it made sense to do this. This is a market, not government, response.
Buy-to-let landlords have also enjoyed tax relief: mortgage interest relief, and a wear-and-tear allowance.
Just like every other business in the country – the cost of providing the good or service is deducted from the revenues from doing so before tax on the profits is applied.
David Renton is a campaigner and barrister.
We must therefore conclude that David Renton is an idiot.
There are solutions. Take the idea of long-term renters in the private market establishing a right to buy the home in which they live. How is the policy likely to look to older homeowners? If it was directed at the single homeowner who split a two-storey house in half and rented out one floor of it, many other homeowners would find the idea objectionable.
But imagine if it was targeted at landlords owning a minimum of five properties (there are enough landlords in that position for it to make a difference). When someone is hoarding five homes, why shouldn’t they be forced to allow others to have a chance of owning their own homes, not to seek profit but to simply live there?
Politicians need to be brave enough to explain to voters that the hoarding of properties by commercial landlords doesn’t just hurt young renters but many homeowners too. A Labour party that forges a cross-generational alliance on this basis could reap serious rewards.
Yep, a mindgarglingly stupid man.
Because you’ve just banned pensions and insurance companies from providing developments of rental homes – even, rentals at affordable rents, as quite a number of them are doing.
In fact, taken as it is, this proposal bans housing associations……