More than two million people are now private landlords.
That’s up by 600,000 since the financial crash. In 2000, less than two per cent
of mortgages in Britain were buy-to-let. Now they account for 15 per cent of
all home loans. That’s roughly £200 billion of borrowing. And it’s borrowed by
private individuals to speculate on house prices. And it’s still growing. New
buy-to-let mortgages account for 18 per cent of all new mortgages. What’s more,
it’s given a helping hand by the tax system – it allows the interest payments
on a buy-to-let property to be tax deductible. You pay tax on the rental income
you receive, but MINUS what your mortgage payments cost you. That costs the
Treasury about £5 billion a year. It is, in effect, a subsidy to landlords
which people just trying to buy a house to live in do not enjoy. Read more on
the Daily Mail website.
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