Low-tax trusts for property investment should not replace buy to let, the Council of Mortgage Lenders has said.
The CML is lobbying the Treasury to make sure that real estate investment trusts, which the government is considering introducing in the UK, do not supercede the practice of buying homes to let them.

There is a perception that the Treasury sees the trusts, which could help housing associations fund homes rented at market rates (HT 23 January, page 18), as a successor to buy to let.

Andrew Heywood, senior policy officer at the CML, said: "We believe the two are complementary. Some have said REITs are the great new thing and buy to let is not as good.

"That's because they think REITs boost supply and buy to let does not. That's erroneous because people buy flats to let off-plan and there's no evidence that REITs would not buy existing property."

Buy to let has brought £31bn into the UK private rented sector since 1996 – only £2bn less than banks have invested in social housing.

The Treasury declined to comment on the CML's claims.

Source

Housing Today