The Great Buy-To-Let Debate: Should Second Home Tax be Raised? By: Isla Campbell

It's well known that the UK is one of the toughest housing markets to break into. At the start of 2007, the average price paid by a first time buyer was 150,000 according to Halifax; double what first time buyers were paying just five years ago.

Many young buyers, struggling to get on the property ladder have blamed buy-to-let landlords for the heated housing market, claiming it makes it even harder for those who don't own any property to be able to buy their first home. They claim that if higher tax was levied on those who wish to buy-to-let, it would make the option less attractive and force the number of buy-to-let landlords down, thus meaning less competition and resulting in more sensibly priced homes.

You often hear people say that there aren't enough properties in the UK. In fact this is not really true - aside from the tiny proportion of homeless people on the street, how many people do you know who doesn't live in a property of some description? The reality is that there is enough property to go round, but because many people own more than one, there's not enough for everybody to be a homeowner.

Once the buy-to-let market has been saturated, there can be problems for tenants. For starters, there is always a small element of cowboy landlords who only care about making money on their property, and will go to great lengths to save money on repairs. Tenants have complained about the amount of time it takes get appliances fixed; and often, being reluctant to shell out on tradesmen, the landlord himself will turn up with his tool box, and in an attempt to save himself money will perform a "bodge job" - a poor quality quick fix, which invariably doesnt last.

However, to completely demonise buyers of buy-to-let properties would be unfair. At the end of the day, they are simply trying to invest their money in the best possible place, and getting a buy-to-let mortgage on a second property is usually a pretty solid investment. And with property prices rising so fast, it's not hard to see why this is such an attractive option - a much better place to put your money than any savings account or stock option.

It must be recognised, also, that not everybody wants the hassle, responsibility and expense of owning their own property; there are plenty for whom renting is an ideal option; for example students, young couples just passing through, business men on temporary contracts etc.

However, there seems to be a strong feeling that something needs to be done about Britain's housing crisis, as a two-tier situation has developed; those who own one or more properties, and those who have little hope of ever getting on the property ladder at all.