Buy to let landlords should get relief from stamp duty or capital gains tax to encourage them to buy more property, which in turn would increase the number of homes for rent, says a Government report.
The report prepared by academic Julie Rugg from York University for Hazel Blear's Communities Department stated that buy to let landlords are often unfairly seen as amateur investors or ignorant short-term speculators.
But Rugg recommends that tax breaks would encourage landlords to view letting property as a business rather than just an investment.
The report mentioned that Buy to Let mortgages should be more easily available provided they go to investors who can prove they understand the rental market.
This would help small investors who are being squeezed in the credit crunch because of the pressure on their mortgages.
But, Rugg also recommended that these mortgages should include clauses to protect tenants if the property is repossessed from a defaulting landlord.
• A 40-year-old woman has became the first council tenant in Northampton to be subjected to a demoted tenancy after ignoring repeated warnings from the council to keep her dogs under control.
Judge Harris QC at Northampton County Court was satisfied that Karen Hanna of 12 Yarwell Square in Camp Hill had breached the terms of her tenancy by keeping dogs without the permission of the council, not keeping them under control and allowing them to cause nuisance and annoyance to others.
The case was brought by Northampton Borough Council after it had received numerous complaints from her neighbours and the local primary school about the dogs not being kept under control and causing people to fear for their safety.
Despite frequent visits from the council's animal welfare and housing officers and assurances from Ms Hanna that she would re-house her dogs with a friend, the situation has got worse.
A spokesperson for Northampton Borough Council said: “Demotion orders can stop a situation from escalating. They send out a clear warning to secure tenants who breach their tenancy. Ignore the conditions of your tenancy and you could lose your home.”
Ms Hanna is the first tenant in the town to be handed a Demoted Tenancy Order.
Demotions last 12 months but can be extended if the council takes action to re-possess the home. As well as having a less secure tenancy, demoted tenants lose the right to buy and to exchange their homes.
Under the conditions of today's order Ms Hanna has been ordered to remove her dog form the property.
If Ms Hanna fails to comply with the order the council could go back to court to apply for a possession order.
