Earth quake insurance quote

A survey by the CBI and property advisers GVA Grimley indicates less call for shops and north of the border.

In contrast, demand has risen sharply in most parts of Britain.

Commercial property can provide an accurate measure of the health of the wider economy.

This research will tend to support the view that the Scottish economy is in weaker shape than the rest of the UK.

English recovery

It suggests a dramatic turnaround from the first half of 2003 in the most prosperous areas, especially in the south of England.

Scotland has not witnessed the same level of momentum as elsewhere Dr Edward GVA Grimley

At that time a majority of UK companies had decreased their property holdings.

In this survey, a clear majority report that they have increased their property holdings over the past six months.

Only two parts of the UK have been left behind by this recovery: the north of England and Scotland.

Dr Edward Trevillion, head of research for GVA Grimley in Scotland, said: “The results indicate that we do have grounds for cautious optimism although Scotland has not witnessed the same level of momentum as elsewhere.”

“However, we have turned the corner and the results confirm the view that occupier demand will improve in 2004.”

But there is a danger that the gap between Scotland and the south of England in economic prosperity could increase.

Cutting costs

This week’s news of a restructuring within Abbey’s Scottish operations will raise the possibility that other parts of Scotland’s financial sector could find themselves at the sharp end of cost-cutting measures.

Property holdings are now expected to increase over the coming six months in every UK region Doug Godden CBI economist

Even Edinburgh-based Standard Life, the largest mutual insurance company in Europe and a bedrock of the Scottish business scene, has had to admit that it is considering a change of status.

If it ended the tradition of mutual ownership by its members, opting instead for a stock market flotation, every aspect of the way it operates could be up for review.

A takeover by another financial would raise even more searching questions about its future.

But the authors of this latest research believe that, whatever individual setbacks are in Scotland, it will eventually feel the benefit of a UK-wide upturn.

Doug Godden, the CBI’s head of economic analysis, commented: “The new year has brought a new-found confidence to the commercial property market.”

“Property holdings are now expected to increase over the coming six months in every UK region and for all types of property.”

Repossession orders have been on the increase since early 2004.

The figures show the total number of homeowners being taken to court by lenders pursuing mortgage debt rose 55% to nearly 30,000.

The Department for Affairs figures will add to concerns about debt and the housing market.

“The increase in mortgage possessions fits with the slowdown in house price inflation,” Alan Clarke, UK economist at BNP Paribas, said.

“The conclusion is there are still signs of financial stress among homeowners,” he added.

Lower than average

In July, the Council for Mortgage Lenders (CML) said there were 4,640 homes repossessed during the first half of 2005 compared with 3,070 for the previous six months.

Lenders have blamed rising repossessions on five interest rate rises between November 2003 and August 2004.

In August this year, UK interest rates were cut by the Bank of England’s Monetary Policy Committee from 4.75% to 4.5%.

The CML has predicted that more than 10,000 homes will be repossessed by the end of the year.

However, repossessions are still set to be much lower than the long-term average of 30,000, or the peak of 70,000 a year recorded during the early 1990s property market crash.

Enforcement

It does not automatically follow that repossession orders, as recorded by the Department for Constitutional Affairs, result in actual repossession.

Generally, the number of court repossession orders is far higher than actual repossessions because often the borrower agrees to pay or a deal is made so the order is not enforced.

A lender may also obtain more than one order for each property if a previous order has lapsed.

What do you think about these figures? Have you experienced home repossession? Do you know anyone who has? What should be done about this problem?

Your comments:

My wife and I live in a small two-bed starter property and we need to move to a lager property due to a new arrival this year, we cannot move up the property ladder because of the massive price difference between the two and three bedroom houses. We are hoping for a housing market crash so we can move on.
Steve, Boston

Perhaps the Government should consider setting a cap on rents for certain areas of the country. This would discourage greedy landlords buying up multiple properties and then charging extortionate rents for those that can least afford it. We need realistic rents in this country so that people have a real choice on whether to buy or rent. Greedy landlords aren’t helping anyone but themselves and the loan companies.
Paul McDonald, Welwyn Garden City, UK

As a young teacher (married with two small children) buying a house big enough for a family of four, is completely out of the question. Even in years to come my wages will not be sufficient to cover a mortgage. In fact currently we qualify for some housing benefit for our two bed house… I can not even afford to rent a bigger place, whilst earning a reasonable wage! We are now planning to immigrate as soon as possible to enable us the live in a house big enough for all of us! No easy choice the thought of leaving our home country makes us all very sad…
Kai, Derby, Derbyshire

It makes me laugh so many people out there looking to blame someone else rather than taking responsibility of their own actions. I agree there should be some sort of ‘cap’ on the amount borrowed which would have helped control house prices / debt over the years but there wasn’t. Ultimately the responsibility lies with the person signing the contract; a simple question of can we actually afford this on our income needs to be asked. As for the guy who said the lender should be liable for any amounts borrowed over 3 x salary….what a joke, maybe he should learn to say no!
Ian, Kent

With my wife we are about to complete on our first house. If it wasn’t for the help of family members who made it possible for us to have a 30% deposit, we would have never made it. We are higher rate tax payers and the repayments will be a bit higher than the rent, but manageable. I think people need to take more responsibility for their actions and stop blaming others (banks, government, advisers) We saved as much as we could for four years and now we can get on the ladder.
Juan C, Surrey, UK

First and foremost, people must take responsibility for their own actions rather than blame others, which seem ever more the case. Property prices have gone up as much as they have because we, the purchasers, are willing to pay. Like it or not, as new building land in the UK becomes rarer, property can only get more expensive. If people wish to own property they need to work for it, with both partners working full time, and save for it, cutting out the unnecessary luxuries. If that’s too much too ask, its not the governments fault.
Max, Bury St Edmunds, Suffolk

House prices are at levels due to a combination of cheap debt, lax lending, and people’s naivety thinking markets only go up. Buy-to-let investors have kept the market propped up until now, they are fast disappearing. Government is scared of a house crash hence their ill advised SIPP legislation attempting to prop up the creaking edifice a while longer- just delaying the inevitable.
Andy, Richmond, Surrey

I left England and bought a house in Germany. It is an accepted fact here that as your house becomes older the price is likely to depreciate or hopefully retain the same value. Of course the same city centre prices apply here as well but the market as a whole is more stable and government tax breaks still exist.
Mike James, Langenfeld, Germany

I think the real problem stems from how easy it is to re-mortgage your home. We did it in the past and we paid off credit cards, etc. and had a really good holiday that year. We didn’t address the real issue until recently, that we weren’t using our credit wisely. We straightened ourselves out and life is much better now. I truly don’t think this is about first time mortgages but what happens when a remortgage kicks in.
Val, USA

I have saved very hard and had some very well paid jobs (above the national average) yet I am not able to purchase a property unless I moved out of London. Then I have the inconvenience of a long journey and all the risks that presents compounded by high transport costs. It is very difficult as a single person to get on the property ladder relying on a salary only. I have a good deposit but alas it is still inadequate unless I double my salary and take out a 30 year plus loan.
Jo, London

Most other countries have borrowed to prop up the economy. This government has preferred to encourage individuals to borrow instead, to fuel consumer spending and the economy. As the consumer credit levels reach their maximum, the harsh reality of this error will effect not just the country but also all businesses and individuals. This is going to get nastier yet.
Graham Found, Banwell, North Somerset

House prices are ludicrously high, and this will not improve when the government gives tax breaks for wealthy people to put homes into their pension schemes at the expense of normal people who just want a home. However, people do also have elevated expectations for their lifestyles - designer-label clothes and cars and so on - which can’t help them to reduce their debt. It’s hard to apportion blame in such a silly situation but the government needs to do something (if only to abandon its pension tax-break plan) if we are not to see a lot of families without proper homes in the future.
David, Surrey

I earn just over 40,000 GBP a year, but cannot afford to buy a house. Because of earlier financial difficulties we didn’t buy a house when we should have, and now have 2 kids. A three bedroom house, even in a poor area in town, is 150,000 pounds which is more than three and half times my income and a lot of money to repay each month as a mortgage. It seems crazy that property prices have reached the point where people paying the higher rate of tax cannot afford to get on the property ladder.
Ian Matthews, Shrewsbury, UK

I work for a financial institution that takes responsible lending seriously. Unfortunately, too many are so driven by their own sales/growth targets and the problems faced by increasing house prices that they have relaxed their lending policies to enable people to borrow far more than they would have been able to over latter years. A number of people probably haven’t worked out how much of an increase in monthly commitments a 1%, 2% hike in base rate makes. Ultimately, the borrower must take full responsibility for their commitment, but I believe that the lenders have a duty to lend responsibly based on their income.
Gareth, Swansea

I am an independent financial adviser and I’ll accept that it is difficult for first time buyers to get on the property ladder. However, I don’t often see first time buyers sacrificing any luxuries or modifying their lifestyles to save for their deposit. Is it peer pressure, lack of guidance from parents or a general lack of of debt that makes this the case? I don’t know! In general people need to be more responsible for their own actions and not blame the banks, the government or the advisers for what is often a self generated problem.
Neil Burton, Tunbridge Wells, Kent

I had 14 different credit cards three years ago totalling 114,000! Obviously I couldn’t cope with the repayments and got a Trust Deed. This helped to get my finances back in order and three years later I am much more credit savvy. But, the finance companies and banks etc keep offering more and more credit. They have to stop or be stopped by government legislation. No-one should have more debt than, say, three times their earnings (including mortgage ). If someone lends a person over and above this level, then the lender should be liable! The number of people who are really struggling is way above the estimates from the government who don’t want to admit to the problem.
Pete, Hamilton, Scotland

I find it laughable that the lenders blame interest rate rises. Andy, Beds

I find it laughable that the lenders blame interest rate rises. They know better than anybody that 4.75% is still a historically low rate. Surely anybody taking out a mortgage should ensure they can afford at least a 2% rise in interest rates. I think we all know that high house prices are the problem here but the housing industry dare not admit it as their profits are at stake.
Andy, Beds

I think people should start to take responsibility for there own actions. No estate agent or bank person was there holding a gun to there head forcing them to take a mortgage that they could not pay for. These people get themselves in to debt buy maxing out all available credit then when the interest goes up they can no longer service the debt and are all surprised by this.
Christopher, Canada

Thank goodness that we are beginning to face up to our financial responsibilities. My son and his partner were able to borrow a horrific sum of money to buy a new house and are struggling to make ends meet. How many others are in a similar position but are simply too embarrassed to admit it?
Betty Middleton, Lancaster

We have become too focused on home ownership. I would be content to rent if the rent I paid was affordable (but I would be hard pushed to find as nice a home to live in the in the private rented sector for the same amount my mortgage costs me) and if I felt I could stay there with some security and a landlord that kept the house up to a high standard. But that’s not the way we are set up to live in the UK.
Katy, Brighton

I left England for Canada in 1999. This year I moved to Turkey. It is a sad and unfortunate fact that I will unlikely to be able to return to my homeland, for the simple reason that I can’t afford a roof over my head. House prices are a millstone around the necks of the British people.
Peter Lee, Ankara, Turkey

Ultimately it’s the customers responsibility to make sure they are not borrowing more than they can afford Ifthir Ahmed-Miah, Newport, UK

It’s all to easy to point the finger at financial advisers and the banks, the financial services industry is one of the most highly regulated industries in this country. Financial advisers are there to advise but ultimately it’s the customers responsibility to make sure they are not borrowing more than they can afford. The government are also to blame for creating the environment for property prices to be out of reach of most First Time Buyers.
Ifthir Ahmed-Miah, Newport, UK

I work for an advice agency. Debt is on the increase make no mistake. However, there are priority and non-priority debts. Your mortgage gets paid pretty much above all else if you don’t want to lose your property. Generally, problems are caused by a catalyst such as relationship breakdown/injury/unemployment etc. Payment protection insurance is, in my opinion worthless. So what are the options? Repossession!
Nick, Hackney

My house was repossessed a month ago. At the height of the property boom in early 2004 I splashed out far more than I could actually afford on a large property with the intention of selling it on at a profit. It wasn’t long after that the property slowdown started but I kept hold of the property and financed the mortgage by getting myself further into debt, I was certain that the housing market would take off again and I would realise my gains. Following two years of quite harsh housing market drops in the south west I have been forced to admit defeat.

I blame myself for everything that has happened but I also think there are a lot of companies around who like to put a rosy outlook on the housing market and try to make everyone think it will always go up (estate agents, surveyors, mortgage companies), they should take part of the blame for lying to the public.
Dan, Bristol

It’s another sign that that the boom in house prices is over and set for a steep fall over the next few years, just like they always have done after previous such unsustainable rises. What’s more worrying this time around however is that interest rates are low, at the moment, but because of high personal debt and high cost of living, people are starting to struggle already. High prices do no-one any good. Even Estate agents are talking the market down - they need sales at any price, not high prices preventing sales.
Andrew, Lewes

Can we stop blaming always the estate agents and banks? I appreciate that they do play a big role in this mess, but why can people, for once, look at their own pockets and stop being so naive? I have finally managed to buy a property at the top of the market price, because I was fed up to pay rent and the flat I was living in was too small. I have stretched my finances as much as possible but the last thing I want is for my house to be repossessed. I live on potatoes and beans before that happens!
Tamara, Aylesbury

It is far too easy to borrow vast amounts of money Andy New, Norwich

I work in the mortgage/financial industry and it is far too easy to borrow vast amounts of money. People can re-mortgage up to the value of potentially over inflated property prices and buy cars, go on holidays etc. This puts such a strain on individual’s finances when rates change, but companies continually encourage it with promotions, low start rates and cash back. A lot of the responsibility is down to the customer to limit their borrowing and not get caught up in the ‘live for today’ or the mortgage marketing ploy. This also applies to the credit card and loan companies.
Andy New, Norwich, UK

I agree with Mike. The main cause lies in the LTV and imprudent leading by banks etc. Sales targets and competition have taken over from concerns about ability to service debt in the long term.
John, Kingston upon Thames, Surrey

It’s nothing more than another sign of a greedy society that thinks it’s acceptable to spend beyond its means. I wonder how many people who have had their homes repossessed also have unpaid credit card bills, personal loans, car finance etc.
Neil Wallace, Sheffield

I personally think that it’s the mortgage agent who should be held responsible for property repossession. I know few people who have managed to borrow more then they can actually repay! Just for the sake of being on the property ladder. There are agents who can manipulate data in order to secure you the mortgage to buy your dream home. There must a law to catch these people.
Nehal, London

People are obsessed by how much their house is worth. How much money they have “made”. The amount of friends I know who no longer buy houses because they would be a nice home but because it can make money. This is just pushing house prices and mortgage repayments out of control leading to this problem. There are no winners apart from the banks. I wish we could realise this and bring prices down to the level they should be.
Alex, Bromley

It goes to show that only property dealers and estate agents and banks benefit from crazy house prices. Normal people who just want somewhere to live, especially young people and young families can no longer afford to buy a house and those who’s houses have gone up in value do not benefit because what can they do, sell up? And live where?
Leigh Porter, Fulham UK

The lenders tend to blame the increase in repossessions on increases in interest rates. However, if they had been more prudent in the amount that was borrowed many of these cases would not have arisen. Lenders have been too keen to provide high LTVs and income multiples.
Mike, Reading

The tax relief offered to buy-to-let owners should be removed, says the president of the Chartered Institute of Housing (CIH).

Paul Diggory has called on the government to tackle the “runaway” market which he says is contributing to problems faced by first-time buyers.

He says buy-to-let owners have a financial advantage over those trying to buy their first home, and push house prices even higher.

We asked for your comments, a selection of which are below. This debate is now closed.

Listen to yourselves. We have become a nation of greedy, self-centred, something-for-nothing pension and house-price obsessives. And if you haven’t got it, you squeal because someone else has. Being young, healthy and free with loving family and friends beats all the pension nonsense hands down.
F Gray, Laide

I am a buy-to-let landlord but can see no logic at all in mortgage tax relief. It allows higher prices to be afforded and provides an unfair advantage over first-time buyers. Landlords do not qualify for business capital gains taper relief so why should they get business tax relief on loan interest?
Michael Hunt, Hungerford

Brilliant idea! Tax to the hilt the very people who are providing a solution to those that cannot afford to buy, so there will be an even worse housing crisis! Sheer genius!
Rob Cargill, London

To suggest that these buy-to-let landlords are somehow putting themselves out to provide a public service is just ridiculous Brian, Glasgow

I would be quite happy if some of the buy-to-let landlords had to sell up if they were taxed. Profiting from property for commercial use is one thing, profiting from what is a basic right of society for everyone to have a roof over their heads is just obscene. To suggest that these buy-to-let landlords are somehow putting themselves out to provide a public service is just ridiculous.
Brian, Glasgow

I own one property which I let out. If tax relief on mortgage interest was abolished, the only thing this would achieve would be to push up rents by about 40% - hardly good news for tenants.
Mr M, London

Buy-to-let is just the same as if a small number of speculators bought up all the food, and then when people were hungry enough, sold it back to them at inflated prices. The practise of BTL should be heavily discouraged, it’s the main cause of the misery of high house prices.
Tomo Redfern, London

Believe me, being a landlord creates just as many headaches as any other self-employed job Helen McGinty, Birmingham

Buying houses to rent is my job. I am a self-employed landlord. I don’t have another job, this is what I do to earn a living. For those of you who think most of us are making a fortune out of rental properties, you are sadly wrong; not to mention all the hassle we have with tenants not paying, trashing our properties, repair work, etc. Believe me, being a landlord creates just as many headaches as any other self-employed job ever could, and at the end of it, when it’s time to sell the property, the chancellor makes a small fortune in capital gains tax. So, I would suggest you take that in to consideration before you start saying we should be taxed even more.
Helen McGinty, Birmingham

Buy-to let landlords provide my family with a rented home. Where will we live if buy-to-let ceases to be a wise investment? Surely the UK is still a “free” land where we are not forced to buy property to live in a house, or does the government wish to own property again. I think not.
Steven Hunt, Ashford

I suggest if you can’t afford to buy and you’re in the position of having to pay extortionate rents to private landlords; join the social housing list and put pressure on them to find you somewhere. The people I know who rent socially pay about 1/4 of the price of private rents and they have pretty good place.
David, London

Ninety per cent of those demanding the change in the law are people who wish they were in the position to own a buy-to-let property themselves . There is no empirical evidence that landlords are crowding out the property market and if anything, demand for rented accommodation is, more often than not, helping to regenerate parts of towns and cities in this country that were totally forgotten.
Juan Carlos Grinan, Walton on Thames

Give mortgage interest relief to all or none P Negi, London

All we ask for is an even field. Give mortgage interest relief to all or none. Why the discrimination? If BTL left the market, the supply would stay the same and prices would come down - people like us would finally be able to buy rather than pay some guy’s pension. All we ask for is equality on the mortgage interest relief issue.
P Negi, London

One way of reducing the number of empty properties is to slash the time taken for planning permission and building regulations approval - in our area the whole process can take six months (it is wise to wait for planning permission before applying for building regulations). If you buy a house that needs total renovation and extension, it can sit empty for six months before work can start. This often happens as more people now rent for a few months to break the house purchase chain and to enable them to take on a “project”.
Phil Ainsworth, St Albans

The BTL investors are a similar breed to those who drove the dot-com bandwagon over the cliff and to those Lloyds “Names” who lost their shirts a few years back. They believe that their investment is so sound that they cannot possibly lose. However, in reality, they are gambling money (often borrowed money that they cannot afford to lose) on a short priced favourite.
Paul, Devon

We’ve made the decision not to sell off our farm cottages, instead we have kept them and let them out for shorthold tenants. We have been offered silly money to sell the houses, but know that they would end up becoming second homes, which would remove even more properties from the housing market. By keeping them as letting property, we are at least giving a chance to locals to live in the local area, where they are usually pushed out by the second home market.
Jason Borthwick, Burnham Deepdale, Norfolk

Southampton is really suffering from this phenomenon Kathy Emmott, Southampton

Not only is buy-to-let pushing up prices, it is also creating streets full of rented properties where no-one cares about the gardens, the rubbish, the neighbours etc and all sense of community is lost as almost all the people living there are entirely transient. I live in a street like that and it is really depressing as I did save all my money to buy my house and all the landlords think about is making cash from the properties. It’s not just my street - Southampton is really suffering from this phenomenon. Something must be done to halt this - raising the tax would be a good start.
Kathy Emmott, Southampton

All these people complaining about landlord’s. I suggest they try letting a property out. Letting law heavily favours the tenant. Letting property is not something to be done on a whim - a lot of come with it. That’s why a landlord is entitled to make some money in the same way as any other business.
Jim, Scunthorpe

If you want to increase supply - do away with capital gains tax for selling. Many landlords can’t afford to sell since there isn’t enough equity in their properties to pay the taxman.
Colin Gordon, Edinburgh

So far I have been outbid twice by BTL landlords John Walters, Halifax

I am a first time buyer looking to get a foot on the ladder and so far I have been outbid twice by BTL landlords. How am I ever going to buy when BLT’ers are pricing us out of the market going above asking prices for property? These houses then stay empty for months.
John Walters, Halifax

Once upon a time a BTL mortgage was considered as a commercial loan, finance was relatively hard to come by, and the interest rates were considerably higher than for a normal home loan. Now lenders are competing to give money away cheaply for BTL mortgages without the traditional income multiples which apply (especially) to first-time buyers. These developments have given the BTL investors far too big an advantage and have inflated the house market unnaturally.
Richard Rogers, Cambourne

Buy-to-let landlords are always wanting to make a profit at the expense of those of us wanting to buy our first home! I think something should be done soon! Like many, both my husband and I work full time but cannot afford a mortgage, let alone raising the money for a deposit, when we are ourselves funding these buy-to-let landlords!
Tracey, Maidstone

I lost a lot of money on buy-to-let and have losses which I cannot offset against other income. These losses are real and are run up on credit cards for which I have to repay out of taxed money. To disallow interest from tax calculations would be to ignore the economic reality of the venture and would be a huge mistake.
Arnie, Edinburgh

Perhaps Gordon Brown can provide some tax relief to landlords who sell up? Roger, London

I want to get out of the housing market. However, if I sell up I will end up with a big capital gains tax bill and this is a disincentive to sell. Perhaps Gordon Brown can provide some tax relief to landlords who sell up? Business owners who do sell up get relief but not residential landlords.
Roger, London

A fair solution would be to enable first-time buyers to pay interest on their mortgages from their pre-tax salary. Introducing a new tax for buy-to-let landlords won’t help first-time buyers a bit. It is just a trick for getting more tax.
Nenad, London

I hear pension, pension, pension. Property has always been a safe investment but when you get into the situation we are in with massively prices we could be in for another pensions crash. We hear about how we’ve had 10 years of growth but it’s all based on debt.
Danny, Gravesend

Most BTL landlords I have come across do not pay any tax whatsoever. They remortgaged their properties when prices went up and used the money as new deposits to buy more properties. If they were honest with the taxman most would not be able to build up a portfolio that fast.
John, London

The biggest issue here is about housing being more affordable and not building more affordable housing. I think the best approach would be for all new-build properties with two bedrooms or under (first-time buyer properties) to be sold only for primary occupancy and not to investors. The new build house we are renting would be perfect for us to buy, we pay 600 pcm rent although the current market value of the house would mean we couldn’t afford to actually purchase it!
John Moore, Northampton

I have nothing against students, but their landlords don’t seem to care if the gardens look scruffy Ann Gowland, Farnham

I have lived in a close of 24 terraced houses for over 20 years. During this time, 12 have come on the market, of which nine have been bought by landlords to let to students, and only three have been bought by families. I have nothing against students, but their landlords don’t seem to care if the gardens look scruffy with overflowing wheelie bins left out on the pavement. I think buy-to-let landlords should not be exempt from tax on mortgage interest. Also I think they should pay council tax. I hope Gordon Brown will address the problem. Rents should be controlled, and tenants should be given more security of tenure.
Ann Gowland, Farnham

If tax relief on interest payments will be scrapped, will capital gains tax also be scrapped?!
Paul, Manchester

People should be allowed to get tax relief on tenancy income on one property, but perhaps it should be abolished for any subsequent rental property after the first one. This should slow the market slightly by pushing out some existing or prospective multiple buy-to-letters.
Lee McCarthy, Rainham

The solution is really very simple. Restore the rights of sitting tenants. Mortgage companies will only lend so cheaply on buy-to-let because they see no risk - they can repossess at any time and the tenant cannot stop them. Meanwhile it is impossible to get anything other than a shorthold tenancy, so tenants have no security. Put back secured tenancies and the market will calm itself down quickly and the lunacy will end.
Silas Denyer, London

I was under the delusion that left-wing jealousy was a thing of the past in the UK Colin, Dubai

I have never read so much rubbish. Any business (and buy-to-let is a business) is allowed to offset costs against income. I was under the delusion that left-wing jealousy was a thing of the past in the UK. Clearly it isn’t.
Colin, Dubai

My wife and I have been buy-to-let landlords for 3 and a half years. We have never made any money from our properties - in fact, the running total of our losses over that period stands at over 27,000. We are currently losing around 700 a month. Because the market is so saturated, we haven’t made any capital gain, either - our properties are now worth less than when we bought them. An awful lot of people have been seduced into the idea of buy-to-let as a great money making scheme - it just isn’t. Our agent in Manchester, where we have one of our flats, told us last year that there were about 25,000 properties available for rent, chasing approximately half that number of prospective tenants - and that’s why properties stay empty.
Tony Jefferson, Oxford

Though I do not have a buy-to-let property at the moment, I do not think that the government should consider any tax rules to discourage buy-to-let investors. I know many investors work very hard to put down a very large deposit. Why should people be penalised when they work hard for it? Many have no confidence in their future pension income so if they have taken steps to build up their property portfolio, leave the investors alone. Comment about investors leaving their properties empty is exaggerated. Who wants to be paying a hefty mortgage and leaving properties empty?
Jan, London

We will never lose our tax relief because it would be lost votes for the government Rupert, Gerrards Cross

This would be a disaster for us landlords. At the moment yields are only 6% on my portfolio. If I lost all my tax relief I would have to sell my portfolio because there would be no financial benefit in keeping it. Even worse, I would then have to pay huge capital gains tax on my profits. It’s not my problem that youngsters today can’t afford anything. We will never lose our tax relief because it would be lost votes for the government.
Rupert, Gerrards Cross

This is typical of the way we always look for someone to blame. I agree with the view that people who buy property and then leave it empty should not benefit, but they can only offset the interest against income from the property. Good landlords rent at affordable market rates. The real issue is that there is no local authorities building social housing and of course Thatcher gave you all the right to buy. How many people bought up the social housing stock, and have reaped a healthy profit. That is the real issue. Stop the blame culture and address the issue, we must build more houses.
Kris Hurman, Ashford

This argument would not have come about if it was not for the laughable inflation targets set by Brown leading to ludicrously low interest rates, and secondly the supply side constraints on house building. If we build more houses and set interest rates against a basket of measures rather than CPI, the price of houses will fall and many highly speculative and amateur BTL landlords will be forced to sell uneconomic so-called investments.
Steven Farrall, Ipswich

We need a partnership between local councils and buy-to-let money. The councils would get the finance to build social housing. The buy-to-let people would benefit from the councils’ expertise and a greater spread of properties. There would also be more homes for renting and for buying. Finally, we need to halt the forced sale of council houses at knock down prices, which has already done too much harm.
Chris Grey, Guildford

Their pension is our homelessness. All property owners exploit a monopoly position - a monopoly in something everyone needs just to be able to have a settled home somewhere and find work. Their capital gains, like those of any owner, are caused by the relative popularity of a location - something their investment itself does nothing to achieve. Their mortgages, like all mortgages, are the core of our money supply and the root of inflation. This isn’t about buy-to-let per se, but about our relationship to land as a society. Land Value Tax would encourage such people to put their savings into genuinely wealth-producing assets, not zero sum gains that exclude others from life’s essentials.
Jock, Oxford

Why should the tenant contribute to their pensions? Patricia Booth, Canterbury

I think buy-to-let landlords have become very greedy. As most of us know, landlords can offset much of their expenditure against tax. So why should the tenant contribute to their pensions? There are plenty of other avenues for investment. Also, the greedy landlords make the tenant liable for the council tax.
Patricia Booth, Canterbury

The reason for the buy-to-let boom is the ridiculous state pension, the uncertainty of company pensions, the ability of the chancellor to destroy private pensions and the risks as shown by the Equitable Life debacle. All these things can be solved by introducing a decent state pension.
John, France

The buy-to-let bubble will eventually take down the whole housing market. In reading all of the comments below it is clear that interest rate rises are already starting to pinch. More rate rises to come? Most likely, and when the landlords start to see that they cannot even break even there will be a stampede for the exits and prices will drop like a stone. This is a disaster in the making. And after that there will no doubt be affordable housing again for the first-time buyers but not before many have lost their shirts.
Nicky, Southampton

The BTL industry in the UK is needed, especially in large, high-density urban areas. Getting rid of tax relief is a half-baked idea - it would be insignificant. It is a highly complex problem to provide enough homes for all and sundry in the south east at the right price. Everybody should have a home in a civilised society but don’t blame BTL. Blame Gordon Brown and co - they run the country and they planned wrong.

Joe Regan, London

Maybe if currently insecure pensions were restored and protected again people wouldn’t need to invest in property as an alternative. My own employers, a blue chip multinational, have followed the market and ended the final salary pension scheme, cutting prospective pensions in half despite making record profits. Buy-to-let is a symptom of this more fundamental disease and taxing such landlords further will only add to the burden of future taxpayers who will have to meet the cost of today’s failed pensions. Deal with the real issue first please and put pensions before shareholder and board greed.
Stephen, Glasgow

Interest relief serves to reduce the rents to millions of tenants… so this is another spun-up non-story.
Hugh Burnett, London

If there is ever a price crash, a lot of tenants will suffer as their rented accommodation is sold from under them Nick, Horncastle

I had to move twice in three years due to buy-to-let landlord greed. First, making the house intolerable by cramming too many people in, then selling the house from under us to cash in their investment. If there is ever a price crash, a lot of tenants will suffer as their rented accommodation is sold from under them in the scramble to sell. We desperately need a stock of rented accommodation divorced from speculation, to serve the same purpose as council housing used to do.
Nick, Horncastle

In the past couple of years interest rates have increased dramatically but rents have been stagnant. As an average investor I am making a loss on my properties. There is already a charge on empty property (council tax) and I would be mad to voluntarily have a property empty, bringing in no income. Unfortunately, sometimes it is difficult to find tenants when you need them. The “tax-relief” on buy-to-let mortgages is a complete nonsense. The mortgage interest (at much higher rates than an a standard mortgage) is one of the costs that needs to be offset against the income.
Colin Allinson, Munich

I assume that those complaining about the supposed unfair tax advantages for landlords will be happy to pay Capital Gains Tax on any gains they make on their own homes. After all, why should people who have to live in rented houses subsidise potentially “fat cat” home owners? Yes, the argument is ridiculous but before envy and claims of unfairness are allowed to destroy a vital source of housing for people on benefits, students, older people without pensions and so on, please can we get our facts straight? I am amazed that the NLA spokesman did not make this point.
John Bird, Billericay

If tax relief is removed, I, like many others, will be forced to sell up Christine Wharton, Cornwall

Would a solution for first-time buyers be to give them income tax relief on their first mortgage? Like many, I went into buy-to-let because I didn’t have a pension. I remortgaged my own home to build up a small portfolio of properties that provide tenants with comfortable homes - though letting law heavily favours them over landlords. But the latest interest rate rises mean rents barely cover mortgage repayments, let alone insurance and other costs. If tax relief is removed, I, like many others, will be forced to sell up. If a mass sell-off leads to a housing crash, I shall be back to square one: no pension!
Christine Wharton, Cornwall

It is not just first-time buyers who are being squeezed out by those looking for investments but also those who need to downsize or even move on the same level. Short-term tenants and second home owners do not contribute towards the community either economically or socially. Investment property owners always seem to have the necessary cash to outbid any owner-occupier buyer in the medium to low-priced property categories particularly in the nicer parts of this town.
Julia, Eastbourne

What a load of rubbish is spoken about investors buying properties and taking them from first-time buyers. The comments I hear most often are first-time buyers can’t afford the deposits, therefore if investors can and they buy them - at least that is providing homes that those very people can live in - whereas if they had to save up a deposit, they would not be living in them.
Rob Cargill, London

The issue of tax relief is an absolute outrage Joy Waters, Norwich

I have children in their 20s whose lives are effectively on hold because of the ludicrous situation in the housing market. They earn too much for social housing, but not enough to buy a house. Most so-called affordable housing is snapped up by investors and I think the issue of tax relief is an absolute outrage. What no one ever seems to answer either is the question of security of tenure. What will happen when all the 20 somethings are having children in a few years time. My children have both been forced to move simply because the rent has been increased or the property sold. Where is the stability in six month tenancies for families?
Joy Waters, Norwich

Offsetting interest against rent is not a “tax break”. Any business making income from owning an asset pays tax on the net income after the costs of running and owning those assets, which includes interest payments incurred as a result of borrowing money to purchase those assets in the first place. BTL is no different. Unlike homeowners, BTL landlords will pay Capital Gains Tax on any gain in value when they dispose of the property. Everyone running a business is treated the same (and fairly so), and it is homeowners that get the tax break.

Chris Baverstock, Fareham

Buy-to-let landlords getting tax breaks is a total disgrace. It is absolutely clear that first-time buyers are taking out ruinous loans. The buy-to-let lobby and the mortgage providers have sewn up the UK housing market - it is scandalous. The so-called “housing market” has become the world’s biggest ever scam. It is ruining many, many people’s lives. Houses are already only affordable by average people having to take out loans well over 10 times income.
Paul Shooter, Salisbury

Affordable Housing is quite rightly discussed on numerous occasions on radio and TV - but no one says how much in cash terms they mean by affordable. Anyone willing to come forward with an answer?
Pat Bourchier, Yateley, Hampshire

Those buy-to-letters of the variety are clearly doomed Duncan, Milton Keynes

Buy-to-let investors have out-priced many first-time buyers in all areas of the country. Their business model is built on rising prices, low interest rates, loose lending policies and also a preferential tax system. With many of these in the process of change those buy-to-letters of the borrow-to-let variety are clearly doomed. Yet banks are still signing off loans and some media outlets are shamefully hyping the market. I think more responsibility should be shown and loans and information relating to buy-to-let should come with a warning as people are unwittingly risking their retirements, and you only get one of them!
Duncan, Milton Keynes

We don’t need any more new houses to be built especially on Greenfield sites. What most people don’t realise is that for every person who wants a home there are five empty houses built before 1960.
Quentin Williams, Bristol

Buy-to-let owners who leave properties empty are not receiving any rent. Interest tax relief is only allowable against earnings from the rental income. Therefore, mortgages on empty properties do not attract tax relief.
Malcolm Johnson, Stoke-on-Trent

The buy-to-let landlord’s mantra seems to be: “Gordon stole our pensions, so we have to invest in property.” So one generation gets their pensions stolen, and now the next generation has had affordable housing stolen from them. What a triumph for our society.

Matt O’Donnell, London

The comments we publish are not necessarily the views of the BBC but will reflect the balance of views we have received. It is helpful if contributors state if they work for any organisation relevant to an issue discussed. Readers should form their own views on whether messages published represent undeclared interests, or views prompted by a common source.

Do you ever get that feeling during a Budget speech that you’ve been there before? BBC News Online provides a guide to measures we expect, and what we already know from past pre-Budget and Budget reports.

Environmental taxes

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Savings & Investments

Individual Savings Accounts (ISAs): From April, the government will scrap the 10% tax credit on dividends from shares held within an Individual Savings Account (ISA). From 2006 the existing 7,000 tax-free allowance will be cut to 5,000, with the Cash Isa limit dropping from 3,000 to 1,000.

SAVINGS: QUICK GUIDE Isas: 10% tax credit to go Child Trust Funds: To be introduced in April 2005 Announcement expected on taxation of trusts, and property investment trusts

Tax shelters: The Budget will report back on the responses to the proposals to overhaul the income tax and capital gains tax treatment of UK trusts. Wealthy families who use trusts to shelter assets from tax will have to give more to the taxman. The rate of tax charged on income and gains within a discretionary trust has been set at 34% for many years. The chancellor has announced an unexpected increase to 40% in the pre-Budget report. However, there may be some help for small trusts to balance the package.

Venture Capital Trusts: The schemes are a way of new and unquoted companies attracting investment money. Changes are expected from 6 April 2004. It’s proposed the investment limit will double from 100,000 to 200,000 and further tax relief of 20% would be given to the trust, but this would be at the expense of the currently available capital gain deferral relief.

Children & families

Child Trust Funds: The government plans to give 250, rising to 500 in the case of low income families, to all babies born since September 2002. The money will not be available to the child until they are 18, by which time it is hoped the Child Trust Fund (CTF) will have grown into a tidy sum and the scheme will start in April 2005.

MATERNITY PAY Statutory Maternity pay: Increase from 100 a week to 102.80 a week

Child tax credits: Changes to Labour’s flagship welfare policy, which will benefit families on very low incomes, were announced in the pre-Budget report. The Treasury says as many as 3.7m families and 7.2m children will benefit from the increase, which will boost the amount people can get by as much as 3.50 a week or 180 a year per child. Other extensions also mean mothers on paid maternity leave will be able to receive help with the costs of childcare for their new babies.

Employer-supported childcare: Controversial changes to tax incentives for employer-supported childcare were announced in the pre-Budget report and are expected to be introduced in April 2005. All employer-supported childcare, not just childcare in work-based nurseries will now qualify for National Insurance (NI) and income tax relief, but this will be capped at 50 a week - well below the typical cost of 128 for a nursery place.

New Deal for Lone parents: In Budget 2002 the government announced it was extending “work-focused” interviews to more lone parents who are claiming income support. Changes from April 2004 will extend the interviews to lone parents on income support with children under five. And from October 2005, lone parents will be required to attend an interview once every three months when their youngest child is aged 14 or over to help them prepare for the transition to Job Seekers’ Allowance. As announced in Budget 2003, it also plans to pilot “Childcare tasters” from April 2004. These will give parents access formal childcare for up to one week.

Property

Property Investment: A new type of property investment vehicle - Real Estate Investment Trusts (REITS) - to improve the supply of rental housing was recommended by Kate Barker’s review into housing supply, published shortly before the pre-Budget report in December. The Chancellor will report back on the proposals in Budget 2004.

STAMP DUTY RATES Up to 60k: 0% 60,001 to 250,000: 1% 250,001 to 500,000: 3% Over 500,000: 4%

Stamp Duty: There has been speculation that the existing rates of stamp duty may be changed, either to help first-time buyers or to raise more revenue for the Chancellor. One change might be to raise the starting rate of stamp duty from 60,000 to 100,000. Stamp duties for this year were frozen in the April 2003 Budget.

Housing Benefit: Major changes were announced in Budget 2003. Measures are being introduced from April to help people over 50 and lone parents work without losing their housing benefit. The “disregard” - how much extra someone can earn before losing their benefit - will also rise to 12.32 from 12 April. Budget 2003 also announced pilots to trial a scheme which pays tenants directly, rather than landlords. The government has said the scheme, which pays tenants a flat rate regardless of the actual charge, is working well. If participants move to cheaper they can pocket the saving.

Pensions

Taxation of pensions: The government will announce in the Budget if it intends to go ahead with the plans to simplify the taxation of pensions, which would take effect from April 2005. Under the proposals, the existing complex tax system of earnings caps will be replaced with a single lifetime limit of 1.4m. Any savings above 1.4m cap would then be taxed at around 55%.

PENSIONS: QUICK GUIDE Full basic state pension will rise to 79.60 for single pensioners and to 127.25 Guaranteed element of the Pension Credit will rise to 105.45 for a single person and 160.95 for a couple

Pension Credit: The guaranteed element of the Pension Credit - a top-up benefit for pensioners on low incomes - has already been announced. Eligible pensioners on low incomes will be guaranteed 105.45, if they are single, and 160.95 for couples. An extension of back to work help for those aged 60 and over and on the Pension Credit by October 2004.

State pension: The full state pension will rise to 79.60 for single pensioners and to 127.25 for a couple.

Income Tax & National Insurance

Income tax: All income tax personal and age-related allowances for tax year 2004/5 were announced in the pre-Budget report. The basic personal allowance for people aged under 65 will be increased in line with inflation to 4,745 for 2004-05. The Chancellor has not yet announced tax bands and rates.

National Insurance: National Insurance (NI) changes were announced in the pre-Budget report. The level at which employees start paying national insurance will rise from 89 a week to 91 a week.

Inheritance Tax (IHT): tax legislation is expected soon on “pre-owned assets” designed to counter inheritance tax avoidance. It could affect people who have transferred their houses to other family members but continue to live in the properties.

Residence and domicile: The government has been considering changes to favourable domicile rules for people who are resident in the UK but are not domiciled here. However, it is still up in the air about whether any changes go ahead.

Business measures

Small business taxation: Many small businesses have rushed to incorporate over the last two years because the Chancellor introduced a zero rate of corporation tax on profits up to 10,000 for limited companies. But the Chancellor is now threatening a new tax regime for small “owner-managed” companies. The move was announced in the pre-Budget report, and details are expected in the Budget. One possibility is the Chancellor could tax dividend payments through a National Insurance levy. Small limited companies are bracing themselves for the details.

RUSH TO INCORPORATE* 2000 to 2001: 238,000 2001 to 2002: 225,000 2002 to 2003: 325,900 2003 to 2004 (11 month year): 357,900 *Companies House

Small Firms Loan Guarantee: Teresa Graham, a member of the Small Business Council, is undertaking a review of the Small Firms Loan Guarantee (SFLG), which helps start-ups with finance.

Electronic filing: In April 2002, the Chancellor announced that employers with 250 or more employees will be required to send their 2004/05, and subsequent, end of year returns .

Rental business property: From 6 April 2004 business assets taper relief is being extended to let property used by unincorporated traders, as announced in Budget 2003.

.gov.uk: In April 2004 the government will launch its new businesslink.gov.uk website.

Skilled graduates: From summer 2004 under the Science and Engineering Graduates’ Scheme, students in shortage science, maths and engineering subjects will be able to work for a year after graduating from UK institutions without the need for a work permit.

Transfer pricing: From 1 April groups of companies will have to pay closer attention to the prices they charge to their subsidiaries in the UK, in the same way they do overseas. Accountants say the rule changes, which are aimed at clamping down on tax avoidance, will lead to a big administrative burden, as they will now have to justify to the authorities the prices they charge members.

Environmental measures

Landfill tax: The standard rate of landfill tax will rise to 15 per tonne in tax year 2004/05. As announced in Budget 2003, the rate will increase by 3 per tonne in 2005/2006 and by at least 3 per tonne for each subsequent year.

Vans: The Inland Revenue currently classes company cars and vans differently. Cars are heavily taxed, while vans get off more lightly. Changes to the taxation of vans was a hot tip for pre-Budget 2003. Instead, the government put off its decision until this Budget.

Liquid Petroleum Gas (LPG): Some people have spent thousands of pounds converting their cars to Liquid Petroleum Gas (LPG), but they could be in for a surprise. The government now plans to gradually increase the duty rate for LPG over the next three years. By how much will be announced in the Budget.

Ultra-low sulphur fuels: From 1 September 2004, that it would introduce a new rate of duty for sulphur-free petrol and diesel. The measure announced in Budget 2003, also committed the government to introduce a special bio ethanol duty rate from January 2005.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

The tax relief offered to buy-to-let owners should be removed, says the president of the Chartered Institute of Housing (CIH).

Paul Diggory has called on the government to tackle the “runaway” market which he says is contributing to problems faced by first-time buyers.

He says buy-to-let owners have a financial advantage over those trying to buy their first home, and push house prices even higher.

We asked for your comments, a selection of which are below. This debate is now closed.

Listen to yourselves. We have become a nation of greedy, self-centred, something-for-nothing pension and house-price obsessives. And if you haven’t got it, you squeal because someone else has. Being young, healthy and free with loving family and friends beats all the pension nonsense hands down.
F Gray, Laide

I am a buy-to-let landlord but can see no logic at all in mortgage tax relief. It allows higher prices to be afforded and provides an unfair advantage over first-time buyers. Landlords do not qualify for business capital gains taper relief so why should they get business tax relief on loan interest?
Michael Hunt, Hungerford

Brilliant idea! Tax to the hilt the very people who are providing a solution to those that cannot afford to buy, so there will be an even worse housing crisis! Sheer genius!
Rob Cargill, London

To suggest that these buy-to-let landlords are somehow putting themselves out to provide a public service is just ridiculous Brian, Glasgow

I would be quite happy if some of the buy-to-let landlords had to sell up if they were taxed. Profiting from property for commercial use is one thing, profiting from what is a basic right of society for everyone to have a roof over their heads is just obscene. To suggest that these buy-to-let landlords are somehow putting themselves out to provide a public service is just ridiculous.
Brian, Glasgow

I own one property which I let out. If tax relief on mortgage interest was abolished, the only thing this would achieve would be to push up rents by about 40% - hardly good news for tenants.
Mr M, London

Buy-to-let is just the same as if a small number of speculators bought up all the food, and then when people were hungry enough, sold it back to them at inflated prices. The practise of BTL should be heavily discouraged, it’s the main cause of the misery of high house prices.
Tomo Redfern, London

Believe me, being a landlord creates just as many headaches as any other self-employed job Helen McGinty, Birmingham

Buying houses to rent is my job. I am a self-employed landlord. I don’t have another job, this is what I do to earn a living. For those of you who think most of us are making a fortune out of rental properties, you are sadly wrong; not to mention all the hassle we have with tenants not paying, trashing our properties, repair work, etc. Believe me, being a landlord creates just as many headaches as any other self-employed job ever could, and at the end of it, when it’s time to sell the property, the chancellor makes a small fortune in capital gains tax. So, I would suggest you take that in to consideration before you start saying we should be taxed even more.
Helen McGinty, Birmingham

Buy-to let landlords provide my family with a rented home. Where will we live if buy-to-let ceases to be a wise investment? Surely the UK is still a “free” land where we are not forced to buy property to live in a house, or does the government wish to own property again. I think not.
Steven Hunt, Ashford

I suggest if you can’t afford to buy and you’re in the position of having to pay extortionate rents to private landlords; join the social housing list and put pressure on them to find you somewhere. The people I know who rent socially pay about 1/4 of the price of private rents and they have pretty good place.
David, London

Ninety per cent of those demanding the change in the law are people who wish they were in the position to own a buy-to-let property themselves . There is no empirical evidence that landlords are crowding out the property market and if anything, demand for rented accommodation is, more often than not, helping to regenerate parts of towns and cities in this country that were totally forgotten.
Juan Carlos Grinan, Walton on Thames

Give mortgage interest relief to all or none P Negi, London

All we first-time-buyers ask for is an even field. Give mortgage interest relief to all or none. Why the ? If BTL left the market, the supply would stay the same and prices would come down - people like us would finally be able to buy rather than pay some guy’s pension. All we ask for is equality on the mortgage interest relief issue.
P Negi, London

One way of reducing the number of empty properties is to slash the time taken for planning permission and building regulations approval - in our area the whole process can take six months (it is wise to wait for planning permission before applying for building regulations). If you buy a house that needs total renovation and extension, it can sit empty for six months before work can start. This often happens as more people now rent for a few months to break the house purchase chain and to enable them to take on a “project”.
Phil Ainsworth, St Albans

The BTL investors are a similar breed to those who drove the dot-com bandwagon over the cliff and to those Lloyds “Names” who lost their shirts a few years back. They believe that their investment is so sound that they cannot possibly lose. However, in reality, they are gambling money (often borrowed money that they cannot afford to lose) on a short priced favourite.
Paul, Devon

We’ve made the decision not to sell off our farm cottages, instead we have kept them and let them out for shorthold tenants. We have been offered silly money to sell the houses, but know that they would end up becoming second homes, which would remove even more properties from the housing market. By keeping them as letting property, we are at least giving a chance to locals to live in the local area, where they are usually pushed out by the second home market.
Jason Borthwick, Burnham Deepdale, Norfolk

Southampton is really suffering from this phenomenon Kathy Emmott, Southampton

Not only is buy-to-let pushing up prices, it is also creating streets full of rented properties where no-one cares about the gardens, the rubbish, the neighbours etc and all sense of community is lost as almost all the people living there are entirely transient. I live in a street like that and it is really depressing as I did save all my money to buy my house and all the landlords think about is making cash from the properties. It’s not just my street - Southampton is really suffering from this phenomenon. Something must be done to halt this - raising the tax would be a good start.
Kathy Emmott, Southampton

All these people complaining about landlord’s. I suggest they try letting a property out. Letting law heavily favours the tenant. Letting property is not something to be done on a whim - a lot of responsibilities come with it. That’s why a landlord is entitled to make some money in the same way as any other business.
Jim, Scunthorpe

If you want to increase supply - do away with capital gains tax for selling. Many landlords can’t afford to sell since there isn’t enough equity in their properties to pay the taxman.
Colin Gordon, Edinburgh

So far I have been outbid twice by BTL landlords John Walters, Halifax

I am a first time buyer looking to get a foot on the ladder and so far I have been outbid twice by BTL landlords. How am I ever going to buy when BLT’ers are pricing us out of the market going above asking prices for property? These houses then stay empty for months.
John Walters, Halifax

Once upon a time a BTL mortgage was considered as a commercial loan, finance was relatively hard to come by, and the interest rates were considerably higher than for a normal home loan. Now lenders are competing to give money away cheaply for BTL mortgages without the traditional income multiples which apply (especially) to first-time buyers. These developments have given the BTL investors far too big an advantage and have inflated the house market unnaturally.
Richard Rogers, Cambourne

Buy-to-let landlords are always wanting to make a profit at the expense of those of us wanting to buy our first home! I think something should be done soon! Like many, both my husband and I work full time but cannot afford a mortgage, let alone raising the money for a deposit, when we are ourselves funding these buy-to-let landlords!
Tracey, Maidstone

I lost a lot of money on buy-to-let and have losses which I cannot offset against other income. These losses are real and are run up on credit cards for which I have to repay out of taxed money. To disallow interest from tax calculations would be to ignore the economic reality of the venture and would be a huge mistake.
Arnie, Edinburgh

Perhaps Gordon Brown can provide some tax relief to landlords who sell up? Roger, London

I want to get out of the housing market. However, if I sell up I will end up with a big capital gains tax bill and this is a disincentive to sell. Perhaps Gordon Brown can provide some tax relief to landlords who sell up? Business owners who do sell up get relief but not residential landlords.
Roger, London

A fair solution would be to enable first-time buyers to pay interest on their mortgages from their pre-tax salary. Introducing a new tax for buy-to-let landlords won’t help first-time buyers a bit. It is just a trick for getting more tax.
Nenad, London

I hear pension, pension, pension. Property has always been a safe investment but when you get into the situation we are in with massively over-inflated prices we could be in for another pensions crash. We hear about how we’ve had 10 years of growth but it’s all based on debt.
Danny, Gravesend

Most BTL landlords I have come across do not pay any tax whatsoever. They remortgaged their properties when prices went up and used the money as new deposits to buy more properties. If they were honest with the taxman most would not be able to build up a portfolio that fast.
John, London

The biggest issue here is about housing being more a