Oral Answers to Questions

Debate between Siobhain McDonagh and George Osborne

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

There is general agreement across the House that there should be a level playing field, so that people trying to buy their first home are not disadvantaged by people trying to buy a second home or a buy-to-let property. The changes that we have introduced help to do that. Alongside that, we have made the ISA more generous and have created new pension flexibility, so that people can get the most out of their pension savings. The low interest rates, decided independently by our central bank, are part of the vital support for our economy going forward.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

20. I acknowledge the work that the Chancellor has done on tackling the bias towards buy-to-let in the housing market, but would he consider extending that by cutting further the tax relief on buy-to-let properties? We simply have to widen the space for first-time buyers so that they can get into the market, particularly in London.

[Mr Osborne]

I welcome the support that the hon. Lady gives; of course, the problems of getting on to the housing ladder are particularly acute for first-time buyers in London. In the summer Budget, we announced changes to mortgage tax relief for the buy-to-let market so that those on higher rates of tax, with larger incomes, will see that relief scaled back over the coming years. What we have set out now, with the extra stamp duty and the changes in the summer Budget, represents a fair and balanced package for homeowners—those buying a buy-to-let property, but above all those buying their first home.