ARE BUY-TO-LETS ETHICAL?

In the latest issue of the Ethical Consumer magazine, columnist Simon Birch examines the ethics of the continuing boom of the buy-to-let market.

Whilst the popularity of buy-to-lets has been fuelled by people's genuine concerns over their pension provision and the poorly performing stock market, Simon Birch considers who has benfittedf and lost from the buy-to-let bonanza.

Ethical Consumer columnist Simon Birch says:

"Can it be right that people in the buy-to-let market on average own more then five houses whilst increasing numbers of first time buyers are struggling to own just one house?"

Simon Birch points out that housing should not be considered to be merely a financial asset like gold bullion or stocks and shares, but is in reality a basic human need up there with food and warmth.

Buy-to-lets now make up 10 per cent of the housing market and are helping to fuel house price inflation resulting in first-time buyers being crowded out of the housing market.

Increasing numbers of commentators including the Royal Institute of Chartered Surveyors are now calling for a public debate on the social cost of the buy-to-let phenomena.

Simon Birch says:
"Quite simply if you sign up to the buy-to-let market you're buying into a
value system which is helping to widen the gulf between haves and have nots. It's up to people themselves to decide whether this is ethical or not."

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