Expert suggests cutting tax breaks for buy-to-let customers
Date:Tuesday 15th June 2010
Author: Susanna Kavka
More affordable housing could be built for those people that need it if the tax breaks enjoyed by buy-to-let mortgage customers were dropped, a sector commentator has suggested.
Katy John, spokesperson for PricedOut.org.uk, claimed that about £1 billion could be saved each year by removing these policies, which favour investors rather than individuals struggling to afford their own home.
She suggested such housing for less well-off consumers should be a priority for the government, noting that 4.5 million people are currently on a waiting list and many prospective first-time buyers are unable to secure a mortgage.
"Additionally, the government should ensure that the planned increase in capital gains tax extends to second home owners and buy-to-let investors," said Ms John.
Her comments were made following a statement by housing minister Grant Schapps, who told the Financial Times that some affordable housing schemes could be ditched due to funding irregularities in the previous government's accounts.