Chancellor George Osborne could crack down on the buy-to-let sector “imminently”.
The new curbs would be on top of measures already announced this month, to scrap the wear and tear allowance and to limit tax relief on the interest of buy-to-let mortgages.
Osborne has now told the Treasury Select Committee that the Bank of England could be handed radical new powers.
These could include the Bank being given powers to restrict the number and size of buy-to-let mortgages.
The Bank of England has warned that a buy-to-let bubble could threaten the financial stability of the whole country.
Osborne said he had already asked Bank of England governor Mark Carney for a consultation.
Asked by MPS about a timeframe, Osborne said: “I think the next couple of months. I have just written a letter [to Carney]. It’s all imminent. It’s happening this year.”
The move follows a downbeat assessment by the Residential Landlords Association of the curbs so far announced.
It says that as a direct result of the Budget, 65% of landlords are now considering raising their rents.
The RLA also attacked Osborne for arguing that landlords are currently taxed more favourably than home owners.
Alan Ward, RLA chairman, said that this was wrong, since unlike home owners, landlords are taxed on capital gains.
He said: “The belief that landlords should be compared to home owners is like comparing apples with pears. The two are vastly different.
“It’s time the Treasury recognised residential landlords as a business.”
Written by Rosalind Renshaw at Property Industry Eye
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