Another journalist has voiced their disagreement towards the government’s perceived attack on the buy-to-let sector.
Paul Thomas, editor of Mortgage Strategy, labelled the string of policies as, ‘political short-termism,’ and, ‘a vote winner to disguise the fact that this administration lacks a clear, joined-up plan for housing.’[1]
War
Writing on the Spectator website, Mr Thomas believes talk of a ‘buy-to-let war,’ is wrong-as war involves two sides and in his mind, only the Government has gone on the attack!
Thomas said mortgage lenders are starting to panic and as such have reduced buy-to-let mortgage prices to record lows. Although this could support the market in short-term, Thomas believes, ‘the truth of the matter is the buy to let sector is likely to stagnate and even shrink in the long term.’[1]
In addition, Thomas said that there is a, ‘damaging double-whammy’ for buy-to-let landlords. These are the mortgage interest tax relief cuts, coupled with the Prudential Regulation Authority proposing stricter lending criteria on mortgage lenders.
Government’s buy-to-let policies attacked again
Intentions
Continuing, Thomas stated, ‘the Government’s policy intention is clear: it wants to wrestle back housing stock from wealthy landlords so first-time buyers can get on the housing ladder. This is political short-termism in its purest form; a vote winner to disguise the fact that this administration lacks a clear, joined-up plan for housing.’[1]
‘There is an acute lack of social housing and, while it is now easier to get a mortgage than it was a few years ago, house prices have increased to such an extent that raising a deposit has become an impossible task for some. Moreover, some people simply do not want to own their own home, given the flexibility renting offers,’ he added.[1]
In conclusion, Mr Thomas warned, ‘things could get very painful for millions of tenants up and down the country should renewed attacks force landlords to find new homes for their money.’[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/4/scathing-attack-on-governments-anti-buy-to-let-short-termism