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Petition To Stop Multiple Home Ownership

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I have a feeling that the stats they are quoting are complete and utter B/S especially those relating to the % of homes that are for private rental now versus 10 years ago.. anyone know better / care to comment ?

Limit-buy2let - epetition reply4 March 2008

We received a petition asking:

"We the undersigned petition the Prime Minister to introduce a limit on the number of residential properties any one entity (either person or company) may purchase without exceptional approval."

Details of Petition:

"introduce a limit on the number of residential properties any one entity (either person or company) may purchase without exceptional approval from the local authority. This is to allow first time buyers a realistic chance of saving for and planning their financial future. The current free-for-all is biased towards those who already own property or who have an advantaged background, with hard work and thrift no longer the guarantee it was for the last 70 years. No-one should begrudge a retirement nest-egg (say, 1 or 2 homes?) but when people start hoovering up 12 properties or more on buy-to-let mortgages surely alarm bells should start ringing? You can't seriously expect our younger generation to competitively bid at today's prices."

Read the petition

Petitions home page

Read the Government's responseThe Government is committed to increasing the supply of housing to ensure that people have the opportunity to buy their own homes. The Government's aim is to help deliver at least 70,000 more affordable homes (of which at least 45,000 will be new social homes) every year by 2010-11.

The Government does not believe that limiting property ownership is the best way to tackle rising housing demand. Overall the private rented sector has experienced only a small increase from around 10% of total housing stock to approximately 12% over the last 10 years.

This suggests that the increase in the number of buy to let mortgages reflects the changing composition of the private rented sector and how it is financed rather than buy to let being the driver for significant growth of the private rented sector. To put it in context, the buy to let market accounts for less than 3% of total housing stock.

Recent research published by the National Housing and Planning Advice Unit demonstrates that since the mid 1990s the average price of a house had increased in real terms by 150 per cent, an annual increase of 8.6 per cent per annum. Without the investment in buy to let properties and no substitute purchases taking their place, the research indicates that the average price of a home over the same period would still have risen by 130 per cent, an annual increase of 7.9 per cent per annum.

A strong, well-managed private rented sector is invaluable to those who do not want, or cannot afford, to buy their own home. There is evidence that buy to let investment, which tends to be targeted at newer housing stock, has improved overall the quality of accommodation within the private rented sector. The Government does have concerns about the activities of some investors who buy homes in new developments expressly to sit on their capital value with no intention of letting them. The Government encourages local housing authorities to make effective use of their powers, such as Empty Dwelling Management Orders, to require that such property is brought back into use.

The Government has asked Julie Rugg, University of York to review the Private Rented Sector to improve our understanding of the sector, consider the barriers to securing a fit for purpose product, what role the sector has into the future and what actions could be taken to influence and support that role.

Further Information

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