A new report into the private rented sector is calling on the Government to cap buy-to-let mortgage lending and ban landlords from buying new-build homes in a bid to boost home ownership.
The Strategic Society Centre paper, Whose Home? Understanding Landlords and their effect on public policy, calls for Government to tip the balance back in favour of first time buyers.
In a radical blueprint for reform, the SSC wants to see a moratorium on landlords buying new-build homes for the foreseeable future and six monthly data published on the number of new-build homes sold into the private rented sector.
It also wants buy-to-let lending capped as a proportion of a lender’s total mortgage lending.
The thinktank calls on Government to review all financial incentives and investment returns generated by landlords. It says private landlords are financially secure and the Government should feel confident about introducing extra protection for tenants even if it proves costly.
Today’s report says the landlords represent just 2 per cent of the UK population and have an average age of 48, compared to the average age of 32.
Nearly half of all landlords have total assets worth £30,000 or more and 26 per cent have assets worth £70,000 or more.
The paper also calls for the Government to build new homes, introduce shared ownership, shared equity for tenants and consider rent controls.
It states: “It appears the functioning of the private rented sector serves to reduce levels of social mobility.
“The Government should therefore lead a public debate about the future of the private rented sector and its impact on society, including radical measures to transfer more households out of the PRS and into home-ownership.”