Tax change for buy-to-let?

The government should change tax rules to try and discourage landlords from continuing to acquire more buy-to-let properties, an industry expert has said.

According to the BBC, Paul Diggory, president of the Chartered Institute of Housing (CIH), made the claim on Radio 4's Money Box programme.

Mr Diggory said that current tax reliefs given to buy-to-let landlords were preventing people buying their own homes and the rules should be changed.

"Our main concern is the acute lack of affordable housing across the UK," he explained.

"We've got many examples now in many cities where properties are being secured on buy-to-let mortgages but are being kept empty."

"Buy-to-let owners [have] a financial advantage over those trying to buy their first home, pushing prices even higher - further out of reach."

However, on the same programme, John Socha, vice chairman of the National Association of Landlords, said that landlords already paid other taxes and provided housing for many people in the country.

"Increasing the tax will squeeze out a lot of landlords," he added. "The government has said it wants a healthy private rented sector. We provide the homes that neither the state nor owner-occupation offers."

Recently, Bradford & Bingley reported that the buy-to-let sector remained "very buoyant" in the first half of 2007.