Government 'knew of buy to let threat to first-time buyers'

12 April 2010

Posted by Simon Whittaker

The government has known since 2004 that first-time buyers were being priced out of the housing market by buy to let investors, a new report has claimed.

Affordable house prices campaign PricedOut has published a briefing on the issue given to the prime minister six years ago and argues it shows the government opted to do nothing to solve the problem.

It acquired the report under the freedom of information act and spokesman William Griffith stated it shows the government is "more than happy to benefit from the feel-good effect of rising house prices yet unconcerned about reining in the negative social consequences."

He said the administration should have shown "greater caution" and taken measures to slow the growth of the buy to let sector at the time the briefing was given to then Prime Minister Tony Blair.

Last month, PricedOut criticised the government after it proposed new tax breaks for buy to let investors.

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