The Strategic Society Centre claims that projections of declining owner-occupier rates could cost the government billions more in benefit payments.
The report argues that debate on declining rates of home-ownership must recognise the long-term implications for public spending.
It states that given the future public cost it is legitimate for the government to take aggressive measures to boost rates of home-ownership now.
Author James Lloyd, director of the SSC, believes the buy-to-let sector and individuals buying second homes will cost the public purse in the long run and warrants action.
The report states: “Although the current rules around ownership and property-taxation enable some individuals to own multiple properties, such behaviour will impose significant costs on the Exchequer in the long-term, and policymakers therefore have a legitimate reason to implement strident measures to reduce such activities.”