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Buy-to-let investors could face a financial penalty if they leave their properties empty for long periods under fresh measures being debated by MPs. Although the Communities and Local Government Select Committee said fines could cut landlords’ investments, it believes the housing shortage is more of a worry. It recommends the government must explore incentives for landlords not to leave their properties empty for long periods in the form of a “fiscal measure,” the MPs said. They added that ‘buy-to-leave’ investors – those unwilling to let, are “unlikely to show great interest in doing so without the threat of some form of financial penalty.” The committee wants 50,000 more homes to be available for social rent in light of “such [a] short supply” of housing, and strong demand from a range of first-time buyers. “The investment made through buy-to-let has helped to increase supply, but is increasing the pressure on housing markets, especially for first-time buyers, and is not always furthering the aim of the creation of mixed communities,” the committee said. “Action is needed to tackle ‘buy-to-leave’, where properties are left vacant for long periods. Further research is also needed on trends and patterns in the housing needs of students and migrants.” The MPs said the past increase in supply through buy-to-let has reduced inflationary pressures, making private renting more affordable compared to the high cost of owner-occupation. But now there is a need for a “mechanism” that local authorities can use to reduce the incidence of buy-to-leave through investing so empty dwellings can come into use. “Local authorities are in the right position to recognise and act upon the problem,” the MPs said, “but they should not have to address the problem of buy-to-leave without the tools or support necessary to do so.” May 22, 2008 Email this article Printer friendly page Previous Page
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