Time to clamp down on the buy-to-let market

IREMEMBER when Right to Buy legislation was developed by the Tories in the 1980s. It was welcomed by those living in council housing who benefitted from massive discounts, but wasn’t so well regarded by those paying full price for their homes through traditional mortgages.

However, the real failing of the measure was that local authorities weren’t allowed to use the money raised to build replacement properties. So as the number of households continued to grow, with more consisting of a single person, there was a shortage of suitable homes to rent. More were at the mercy of private landlords with their short-term tenancies and the need to provide both rent/bond in advance.

Now it seems that the Government want to extend the Right to Buy to those living in homes owned by a social landlord such as LHP (formerly Shoreline).

This, though, will do nothing for people in private rented accommodation who languish on waiting lists for social housing which would give them more longterm security. For though we talk of a property-owning democracy, the fact is that house prices have risen far more than wages/salaries over the years, making it harder for anyone to get on the housing ladder.

So what really should be done? Well I have serious doubts about letting benefits be used towards mortgages. Won’t this be similar to the sub-prime market in the USA, when the collapse of Fannie Mae and Freddie Mac led to the onset of world recession in the 2000s?

Instead, I would clamp down on the buy-to-let market, where people’s homes are simply used as objects of investment. You see this in Grimsby, where cheap homes that first-time buyers could afford are snapped by rentiers and the next thing you know is that they are up for rent.

Perhaps the answer is to restrict the number of houses people can own, and limit sales of some properties to those wishing to purchase for the initial time.

Tim Mickleburgh, Boulevard Avenue, Grimsby.