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Again we enter the world of the govt interfering with capital allocation which generally has unintended consequences... I'm probably too righty for this thread.
hurricane_run-
Not necessarily. Market-driven capital allocation tends toward over-centralisation in natural monopolies, like land. Allowing private building for only new homes just uses that in a socially productive manner, without reducing the private capital of others.
(I’d argue that landlords are bad capitalists, much like Adam Smith.)
slippers
I think one of the avenues to go down here is to disallow BTL mortgages for existing properties, and only allow it on new ones.
Also happily creates an incentive for potential landlords to build or fund the building of new homes, but particularly where rentals are most needed: on brownfield plots in cities and densifying the suburbs, allowing things like cycling infrastructure to become more viable.