The treasury have announced plans to forward a tax break to buy to let mortgages. This has caused many groups to become outspoken about the perils of this proposed action.
According to the objectors the sharp rise in buy to let to mortgages during the last boom was responsible for inflating prices and making it impossible for first time buyers to get into the market. the council for mortgage lenders has reported a sharp drop in the number of first time buyers since the credit crunch and the Priced Oy lobby group have been quick to put out that they believe tax breaks for buy to let will make the situation worse.
It has got to be a conundrum for the government though because as we all know they are facing a major housing shortage and with the banks not loosening the purse strings for fist time buyers there is no guarantee that sector will be able to get finance to do anything about it.
Many agree that private landlords may be the best hope for avoiding a crisis. Priced out clearly have their own barrow to push and as with most lobby groups they do not always consider the consequences on the rest of the economy. A balanced approach is surely best. It will be interesting to see which way the government jumps.
