According to new research, the Buy-to-let scheme has resulted in 2 million families being unable to afford a home, in addition to the fact that the UK has built half the amount of homes that France did in the same period.
Major reform of the planning system, emphasising local communities' interests over developers, stronger roles for local councils and an end to tax breaks for buy-to-let landlords are some of the recommendations contained within the report by Conservative thinktank Onward.
The author of the report is Neil O'Brien, who worked for both George Osborne and Theresa May emphasises the need for government intervention in the housing market, including the ability to limit foreign ownership:
“We need to change the balance between the rented sector and home ownership,” O’Brien said. “We should protect existing landlords but discourage more people from investing in rental property, because the buy-to-let boom has bid up prices and reduced home ownership among younger people.”
Capital that could be more efficiently deployed and a reduction in the amount of homes available for owner occupiers are some of the reasons why the current system needs further reforms.
"The UK is one of the cheapest countries for investors involved in residential rental investments," according to the report.
Rising home prices combined with the lack of supply have made unconventional ideas necessary according to the report.
£2.5 million of value is added to a hectare of agricultural land once it has received planning permission, which if the community benefited from some of this increase, services and infrastructure could benefit.
A more European approach to development is suggested by the report, arming councils to plan developments in concert with public transport.
Higher density urban occupation and better support in order to enable councils to plan new developments should also be implemented according to the report.
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Buy-to-let has skewed housing market and must be curbed, says thinktank