Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what proportion of all mortgages were buy-to-let in each region of the UK in the most recent period for which date is available; and what assessment his Department has made of the potential impact of buy-to-let purchases on the availability of properties for first-time buyers.

In Q2 this year, 13.6% of new advances were buy-to-let mortgages.

Whilst the Government wants to support those who aspire to be homeowners, we appreciate that this is not everyone’s aspiration and that there are many people for whom renting a home is either more practical or affordable. There therefore needs to be a thriving private rental sector to accommodate these people’s housing needs.

However, the Government is aware that the growth of the buy-to-let sector can impact other people’s ability to get on the property ladder. This is why higher rates of Stamp Duty Land Tax were introduced in 2016 for the purchases of additional residential properties. The Government has also restricted the amount of income tax relief that landlords can claim on property finance costs to the basic rate of tax.

The Government remains committed to helping as many first-time buyers as possible to get on the housing ladder, and operates a range of schemes that aim to increase the supply of low-deposit mortgages, increase the availability of new housing, and stimulate economic growth. These include First Homes, Shared Ownership through the Affordable Homes Programme, and the Mortgage Guarantee Scheme. The Government also helps first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA. Over 800,000 households have been helped to purchase a home since spring 2010 through these Government-backed schemes, with the annual number of first-time buyers at a 20-year high in 2021.