The ability to deduct mortgage interest before paying tax on rental income does not offer buy-to-let investors an advantage over owner-occupiers. But the fact that investors are not subject to the majority of regulations that govern first-time buyers and homemovers does. Given that those regulations have been strengthened recently, and the Government has resisted a request from the FPC for limited BTL powers, the share of lending going to investors is likely to continue to rise gradually.
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