To ask Mr Chancellor of the Exchequer, with reference to the Prudential Regulation Authority's Draft Supervisory Statement on Buy-to-Let Underwriting Standards, published in March 2016, what assessment he has made of the potential effect of the 20 per cent growth in buy-to-let mortgage lending over the next three years on home ownership.
Answered on
13 April 2016
The Government is committed to supporting homeowners. One part of this commitment is ensuring that there is a level playing field between homeowners and landlords. In the 2015 Autumn Statement, we announced a 3 percentage point increase in the rates of Stamp Duty Land Tax applying to the purchase of additional residential properties, such as second homes and buy-to-let properties; and in the Summer Budget of 2015, we acted to restrict, to the basic rate of income tax, the tax relief on finance costs received by landlords of residential property.
The Financial Policy Committee recently stated that the combination of forthcoming changes to mortgage interest tax relief and the implementation of the PRA Supervisory Statement will probably dampen growth of buy-to-let mortgage lending relative to lenders’ plans.