Nationwide group distribution director Matthew Wyles has called on the Government to introduce tax breaks to encourage more investors to the buy-to-let market.
Speaking at the Great Housing Debate last week, Wyles said the buy-to-let sector has become hugely important to the property market.
He said: “The buy-to-let market is now a fundamental and important segment of our housing solutions and it is set to grow. It is an opportunity for the young to rent in a flexible, low-risk way.”
“We would rather lend at 75 per cent loan to value on a buy-to-let to a hardened, experienced investor than to a 22-year-old plumber who wants a 95 per cent loan.”
Wyles said he does not want to see the sector blighted by regulation and called on the Government to offer potential BTL investors incentives to attract more landlords.
He said: “I do not understand why new lenders are not coming to market more readily. We need to make sure our friends at the regulator cut us some slack around capital weightings so we do not end up with another social need obstructed by regulatory blindness.”
“It is something that should qualify for consideration by the Government for tax beaks. Some fiscal stimulus for the buy-to-let market, as long as it is not too distorting, would be welcome.”
Buy To Let Funding Services principal Geoff Laird says: “Were it not for the private landlords entering the buy-to-let sector in the last 11 or 12 years, there would be far less decent property for people to live in. Incentives for landlords would be much welcomed.”