Buy-to-let market over-inflated by tax breaks

Tax breaks that allow investors to put residential properties into pension funds are over-heating the buy-to-let market, the Liberal Democrats have said.

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Treasury spokesman for the Lib Dems, Lord Oakeshott, said rules allowing higher-rate taxpayers to buy £100,000 properties for just £60,000 are encouraging speculation in a falling market.

Lord Oakeshott, the Treasury spokesman for the Lib Dems, said in The Times: ‘Speculators in buy-to-let flats in Britain and jet-to-let holiday homes abroad can’t believe their luck. Gordon Brown has handed them a tax windfall by letting them put residential property into their personal pension funds from April next year.’

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