Miras propelled a generation into home ownership. It is now being promoted as the way to keep the current generation's struggling owners in their homes - as well as doing something for first-time buyers.

Many of the people that Miras might help, however, are unfamiliar with this acronym, which sounds more like a character in a World of Warcraft game than a tax break (Miras the Malevolent?).

The history of Mortgage Interest Relief At Source may not be quite so eventful as an adventure in the World of Warcraft realm. But everyone needs to know more about how Miras came to be and how it was withdrawn, amid the increasing pressure for its re-introduction in next Monday's Pre-Budget Report, as part of a housing market stimulus package. It should be noted that Barack Obama has already shown the way with his mortgage tax credit scheme for US homeowners.

Miras made its appearance in the 1969 Budget; the late Roy Jenkins, Chancellor at the time, wished to boost home ownership's appeal. It was abolished in April 2000 by Gordon Brown, who regarded it as a middle-class perk. But, in the interim, Miras not only made it possible for millions to buy but also played a role in the property slump of the early 1990s.

Nigel Lawson announced in March 1988 that cohabiting couples could no longer each claim £30,000 worth of Miras (a valuable handout, as the price of the average first-time buyer property price was £40,074). But - in what Lawson later regarded as his greatest mistake - the implementation of this restriction was postponed until August, causing a price spiral, as couples rushed to move in together before the deadline. In many cases, their ardour swiftly cooled, but they were were forced to remain à deux by the slump in prices and the doubling of interest rates, which left those who were formerly loved-up in negative equity.

This episode could persuade Chancellor Darling that Miras carries a curse, but this will not quiet the clamour for a mortgage subsidy for those on low and middle incomes.

Stuart Law, of Assetz, the investment business, is among those who argue that Darling should also give the rich a tax break. Currently if an investor buys several properties from a developer, stamp duty will be charged on the total value. Under the temporary stamp-duty holiday (which the Chancellor should extend, by the way) no tax would be levied on a £100,000 flat, but the bill for six (total £600,000) would be £24,000.

Darling could rebut any accusations of favouring the well-off, as such a stratagem would lift some of all-pervasive gloom in the construction industry, where workers are being laid off and suppliers are desperate for orders. Miras made its debut in an era of economic turmoil. It could be a powerful ingredient in the Chancellor's recipe for the current situation.

Live and let

In August they were the accidental landlords, the people who, unable to sell their homes, had let them instead in what seemed the easy way out of a dilemma. They are now the reluctant landlords, having come to realise the full implications of their status - and wishing that they were not in the lettings business.

This discontent arises partly from the growing competition in the sector. More owners, unwilling to slash their asking prices by the amount necessary to sell, are now looking for tenants rather than buyers. Landlords in almost every region are facing longer periods when their properties are empty and lower rents if they are occupied. In one extreme example, the monthly rent on a Pimlico flat has fallen from £3,445 a month to £2,990.

Adding to the woes of the landlord who is not only reluctant but also dishonest, there is the increased eagerness of the taxman to unearth undisclosed rental income. UHY Hacker Young, the accountant, says that there have been 7,371 Customs & Revenue information investigations into buy-to-let landlords since July.

Meanwhile, some agents are running pre-Christmas promotions under which new tenants enjoy a 50 per cent discount off the first month's rent. More of this and reluctant landlords, unable to cover their mortgage repayments with rental income, will decide to sell. This moment will indicate that the market is close to its lowest point.

Kitchen sink drama

The kitchen, pictured above, is the one that bankers want now, provided that they are still in their jobs and have at least £40,000 for a room in which they would probably spend no time (there tends to be an inverse proportion between the amount invested in a kitchen and the level of its use). The kitchen is the Poggenpohl Porsche P7340, a collaboration between the kitchen group and the car-maker and deliberately a bit blokey in its styling. The first will be installed in the show flat of the tallest residential building in Ireland, the Elysian in Cork, a place that does not spring first to mind when discussing bling.

anne.ashworth@thetimes.co.uk

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