Ed Howker, the author of “Jilted Generation”, told Channel 4 News: “Unquestionably, the winners in the buy-to-let market are older people and those who have done buy-let. And the result is unfortunately we have a housing market that is not in any way providing for the needs of the next 20-30 years and of the next generation of people.
“There’s a very basic question which government has to decide on, which is what exactly is the purpose of housing?
He continued: “Government, in the last ten years and it seems to continue, seems to encourage people to use housing as a way of speculating, and this is a massive social policy failure.”
The report from Channel 4 news’ economics editor Faisal Islam said the buy-to-let market defied predictions it would suffer during the downturn, with just 1% of the 1.4m buy-to-let properties repossessed.
Islam asserted that in the depths of the housing crisis, 65 per cent of buy-to-let lending the following year came from bailed-out lenders.
However, the report suggested the buoyancy of this market is causing problems for first-time buyers, who are chasing the same properties as buy-to-let investors.
Channel Four figures suggest 56 per cent of buy-to-let mortgages ever lent in Britain sit on the books of bailed-out banks and economics editor Islam questioned government’s support for the buy-to-let industry which it said is in direct conflict with the push to help buyers own their first homes.
Islam also said Bradford & Bingley and Northern Rock’s joint £30bn BTL mortgage book is being run off slowly by a central agency in London.
A Northern Rock spokesperson, said: “It wouldn’t be correct to say our buy-to-let book is in run-off. Northern Rock Asset Management continues to service its book and Northern Rock Plc, the entity created on 1 January, continues to lend. Our buy-to-let lending level this year is on a par with the previous 2 – 4 years.”
“I did try to get hold of Channel Four to respond but they never came back,” she said.
