"We have an urgent budget deficit and a pressing need to rebalance the economy towards productive enterprise. Any u-turn to preserve tax breaks for Buy-to-Let investors or second home owners would be a betrayal of First Time Buyers and the wrong choice for future economic health.
"The tax system gives clear signals as to what type of economy and society we want to become. Any backtracking on CGT by George Osbourne would be a red flag against enterprise and equity and a green flag for rent seeking and speculation. Over the last ten years, we have seen at least 1.2 million first time buyers displaced from the property market by Buy-to-Let investors – now is the time to redress the balance. We think it is important that the views of first time buyers are heard in this debate in opposition to those who stand against the CGT increase. We are not surprised at the strong reactions from those with vested interests – such as the National Landlord’s Association – who are worried about their own property empires rather than the pressing national issue of housing affordability."
Recent research by PricedOut found that unequal purchasing power due to the UK tax system and lax financial regulation has given buy-to-let investors an unfair advantage over first time buyers, and lies behind the growing displacement of first time buyers from the housing market. Council for Mortgage Lenders data analysed by PricedOut shows that, for an average first time buyer property, buy-to-let investors’ mortgage costs – given their tax advantages and common use of interest only mortgages – amount to just over a seventh of their net income. In comparison, first time buyer average mortgage costs amount to a nearly a third of net income.
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