New measures to restrict the growth of the buy-to-let market risks undermining attempts to boost new housing supply, warns a leading property consultancy, as the government and Bank of England mull new credit controls.
The buy-to-let sector provides an important source of finance for house building, says Julian Goddard, head of residential at Daniel Watney LLP, and without it the government won’t be able to achieve its target of one million homes built by 2020.
Urging the government to learn from the experience of the new build prime market, which has been hit hard by stamp duty changes, Daniel Watney LLP are calling for a rethink on policies affecting buy-to-let.
Julian Goddard, head of residential at Daniel Watney LLP, said:
“The government could risk biting the hand that feeds housing supply if it chokes off buy-to-let. We’ve already seen the crushing effects tax policy has had grinding the new build prime market to a standstill.”
“Without public building the buy-to-let market provides ones of the single biggest drivers to financing house building. Without it the government hasn’t a hope of building one million homes by 2020, and it needs to consider wholesale reform not capricious credit controls which may have unintended negative consequences.”