Mortgages  

‘BTL not to blame for imbalances’

‘BTL not to blame for imbalances’

Scapegoating of the buy-to-let market as the cause of imbalances in the housing sector is wrong, according to a BTL mortgage broker.

Paul Brett, business development director of Foundation Home Loans, said, “When seeking a scapegoat for the imbalance in the housing market, it is easy to alight on BTL, because of its success, as a suitable cause.”

“The fact is that the high price of house purchase is predominantly the result of a property shortage.”

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Mr Brett said that official figures from the Department for Communities and Local Government, which were released in August, showed that house building reached a record low of 135,000 new homes in 2012/13 – down by more than 300,000 per year during the 1970s”, Mr Brett claimed.

Adviser view

Mike Richards, director of London-based mortgage adviser Mortgage Concepts Associates, said: “I completely agree with Mr Brett’s comments.

“BTL is nowhere near the level it was at before the credit crunch in 2007, and this has not caused an imbalance in the housing market. The real problem is the poor record in house building in this country. But the press, the government and the EU do seem to want to restrict BTL nevertheless.”