THE housing market is in crisis with young people struggling to buy and forced into paying very high rents based on the capital value of the rented property.
There seem to be no solutions, only temporary schemes put forward by political parties which may help a few but also fuel the ever increasing cost of property.
I suggest a simple and radical solution: progressively abolish the tax relief given to those taking out “buy to let” mortgages. Young people do not stand a chance against wealthier middle aged competition swooping on new build blocks of flats and taking advantage of the tax relief available. Basic rate taxpayers who do not qualify for tax relief on their one and only mortgage are subsiding second and multiple home owners and the Chancellor George Osborne is losing out on tax revenue. Abolishing the relief over four years will help reduce the deficit.
Now wait for the howls of anguish from the poor property owners. Well, I am one of them. I have three buy to let mortgages. This does not stop me from thinking that the system is unfair and loaded against potential young buyers. I do not think my plan would lead to a crash in property prices, only stabilisation and I think the lenders would soon have more funds available for first time buyers.
Please think about it, George.
Colin Kilpatrick, Lucerne Road, Oxford
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