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.’
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.’
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
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.’
‘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.
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.’