Aideen Hayden (Labour)

I thank the Minister of State for his response to the debate so far. It has already been acknowledged, particularly by AIB, that its buy-to-let loan book is impaired to a far greater extent than its domestic loan book. I am concerned that insufficient analysis has been done to date on the buy-to-let market. The repercussions of default in the buy-to-let mortgage market will be felt in the overall housing market because we do not have a non-recourse lending system against, ultimately, family homes.

Some people are in what I call a rent-to-rent situation. They bought property mainly from 2004 onwards and now may have moved job, gone to another part of the country or even emigrated. I am principally concerned about people who are living in this country and who may be renting in one location while letting their original purchased property. I understand they are not eligible for the mortgage interest tax relief on the property they own because they are not occupying it as their principal residence. They get very little tax relief on the rent they pay for the property in which they live. They are also subject to the non-principal private residence tax. Through no fault of their own they are stuck in negative equity, in arrears and getting no benefit from the system we have in place and are paying additional costs they would not be paying were they residing in their own home. Perhaps the Government would consider some changes to alleviate that situation.