With a drastic shortage of properties in the UK housing market, and a continual rise in the BTL sector, Lord Greaves urged the government to reconsider the possibility of limiting BTL investors’ opportunities within the market. Speaking at Prime Minister’s questions, he asked if the government planned ‘to introduce measures to restrict the amount of lending for BTL housing purchases, or to tighten the tax regime in relation to BTL housing.’
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However, responding to the question, Lord Davies of Oldham indicated that the government, although recognising the need for changes to the housing market, had no plans to cap the thriving BTL market.
He said: “The government has no plans to restrict the amount of lending for BTL housing, which will be a matter of commercial judgment for firms. All taxes are kept under review as part of the Budget cycle.”
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Baroness Andrews, the Parliamentary Under-Secretary of State at the Communities and Local Government, added: “The private rented sector has a key role to play in housing people not in home ownership or social housing. The sector has expanded modestly since deregulation of the market in 1989. BTL mortgage lending has facilitated some of this expansion and has also helped to drive up quality and choice within the private rented sector through investment in newer stock.”
